Abstract

Cellular automata are a class of computational models that make it possible to represent complex dynamic systems with a large number of interacting units. The global properties of the system originate from the evolution of the automaton, subject only to the rules of local interaction. An industrial district can be considered as a system with a large number of small firms taking action without a global strategy. Each firm interacts locally with other firms within a co-operation/competition framework. One of the most important elements characterising an industrial district consists in information transparency, i.e., the circulation of market and product information throughout the system. This paper describes a dynamical cellular simulation of an "ideal-type" industrial district with a focus on this particular feature. The results are important - revealing an increase in the mean profitability of firms in the industrial district compared to other productive systems and a more uniform distribution of profits, along with a lower aggregate and market concentration.