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The Learning Curve and Competition

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Author Info
A. M. Spence

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Abstract

This article develops a model of competitive interaction and industry evolution in the presence of a learning curve. The learning curve is a function relating the unit costs of the individual firm to accumulated volume. The responses of the model to shifts in parameters are explored through calculated examples. The paper also used a two-period model to explore differences between open and closed-loop equilibria, and to assess the impact of learning spillover effects from one firm to the next.

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Publisher Info
Article provided by The RAND Corporation in its journal Bell Journal of Economics.

Volume (Year): 12 (1981)
Issue (Month): 1 (Spring)
Pages: 49-70
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Handle: RePEc:rje:bellje:v:12:y:1981:i:spring:p:49-70

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This page was last updated on 2009-11-13.

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