Geography Reference
In-Depth Information
components. When we adjust Figures 15A.1-15A.3 to incorporate more frequent redis-
covery ef orts on high-
K
landscapes, the citation pattern shifts to that shown in Figures
15A.4-15A.6. In contrast to Figures 15A.1-15A.3, the frequency of close- and distant-
actor citation now rises at i rst, rel ecting the fertility of higher-
K
landscapes, but then
declines. In line with Figures 15A.1-15A.3, the largest gap between close-actor and
distant-actor citation arises for knowledge of intermediate interdependence.
Finally, suppose that the number of attempts made by close and distant actors rel ects
the utility that each expects to attain in a rediscovery attempt. In deciding whether to
engage in an attempt, parties not only understand that potential utility increases with
K
,
but they also adjust for the odds that they succeed. For instance, distant actors under-
stand they have lower odds of success and therefore make fewer attempts than do close
actors. When we adjust Figures 15A.1-15A.3 in this manner, we project the citation
pattern shown in Figures 15A.7-15A.9. Now the distant-actor citation rate declines
monotonically with
K
while the close-actor citation rate has an inverted-U shape. Still,
the gap between the two reaches its peak at an intermediate value of
K
.
In sum, the robust prediction of our theory concerns
the gap between citation rates
of close and distant actors
, not close-actor citation rates by themselves or distant-actor
citation rates alone. The gap between the two citation rates should have an inverted-U
relationship with respect to interdependence.
Notes
1. Our focus on the global maximum simplii es the simulation, but the results remain qualitatively robust to
a wide range of alternative assumptions.
2. Note that the empirically derived measure of coupling in the main text,
k
, corresponds to the parameter
K
in the simulation model, but the two dif er at least in terms of scaling. For more on this relationship, see
Note 9.
3. Kauf man (1993) explores these ef ects further.
4.
For the intuition behind this ef ect, see Rivkin (2001), p. 283.
