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Learning by doing, spillovers and shakeouts

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Author Info
Jim Jin
Juan Perote-Peña
Michael Troege ()

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Abstract

This paper studies industry evolution driven by non strategic learning by doing and spillovers. We characterize a dynamic process of cost and output changes and its effect on welfare and industry profits. The paper gives conditions for shakeouts to occur and analyzes the key factors affecting these conditions. Since shakeouts could lead to a long-run social loss due to higher market concentration, there is a role for a government to play in limiting unnecessary shakeouts. The most effective way to do so is to enhance spillovers. Copyright Springer-Verlag Berlin/Heidelberg 2004

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File URL: http://hdl.handle.net/10.1007/s00191-003-0177-5
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Publisher Info
Article provided by Springer in its journal Journal of Evolutionary Economics.

Volume (Year): 14 (2004)
Issue (Month): 1 (January)
Pages: 85-98
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Handle: RePEc:spr:joevec:v:14:y:2004:i:1:p:85-98

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Related research
Keywords: Market evolution; Learning by doing; Spillover; Shakeout;

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  1. C. Halmenschlager, 2004. "Spillovers and Absorptive Capacity in a Patent Race," Working Papers ERMES 0409, ERMES, University Paris 2. [Downloadable!]
    Other versions:
  2. Emanuela Randon & Ahmad Naimzada, 2007. "Dynamics of the non linear learning curve with spillovers in a differentiated oligopoly: effects on industry structure," Journal of Evolutionary Economics, Springer, vol. 17(1), pages 95-106, February. [Downloadable!] (restricted)
    Other versions:
  3. Andrew Burke & André van Stel, 2009. "The Entrepreneurial Adjustment Process in Disequilibrium," Tinbergen Institute Discussion Papers 09-005/3, Tinbergen Institute. [Downloadable!]
    Other versions:
  4. Bläsi, Albrecht & Requate, Till, 2005. "Learning-by-Doing with Spillovers in Competitive Industries, Free Entry, and Regulatory Policy," Economics Working Papers 2005,09, Christian-Albrechts-University of Kiel, Department of Economics. [Downloadable!]
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This page was last updated on 2009-12-8.

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