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Learning by doing, spillovers and shakeouts

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Author Info

  • Jim Jin
  • Juan Perote-Peña
  • Michael Troege

    ()

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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Bibliographic 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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Cited by:
  1. Emanuela Randon & Ahmad Naimzada, 2004. "Dynamics of the Non Linear Learning Curve with Spillovers in a Differentiated Oligopoly: Effects on Industry Structure," Working Papers 80, University of Milano-Bicocca, Department of Economics, revised Oct 2004.
  2. Christopher A. Laincz & Ana Rodrigues, 2007. "The Impact of Cost-Reducing R&D Spillovers on the Ergodic Distribution of Market Structures," Working Papers 23, Portuguese Competition Authority.
  3. Amir, Rabah & Halmenschlager, Christine & Jin, Jim, 2011. "R&D-induced industry polarization and shake-outs," International Journal of Industrial Organization, Elsevier, vol. 29(4), pages 386-398, July.
  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.
  5. André van Stel & Andrew Burke, 2008. "The Entrepreneurial Adjustment Process in Disequilibrium," Scales Research Reports H200809, EIM Business and Policy Research.
  6. Andrew Burke & Andr� van Stel, 2009. "The Entrepreneurial Adjustment Process in Disequilibrium," Tinbergen Institute Discussion Papers 09-005/3, Tinbergen Institute.

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