Learning by doing, spillovers and shakeouts
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 2004Download Info
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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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Web page: http://link.springer.de/link/service/journals/00191/index.htm
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Related research
Keywords: Market evolution; Learning by doing; Spillover; Shakeout;References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- 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.
- 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.
- André van Stel & Andrew Burke, 2008.
"The Entrepreneurial Adjustment Process in Disequilibrium,"
Scales Research Reports
H200809, EIM Business and Policy Research.
- Andrew Burke & André van Stel, 2009. "The Entrepreneurial Adjustment Process in Disequilibrium," Tinbergen Institute Discussion Papers 09-005/3, Tinbergen Institute.
- 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.
- 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.
- Amir R. & Halmenschlager C., 2008. "R&D-Induced Industry Polarization and Shakeouts," Working Papers ERMES 0802, ERMES, University Paris 2.
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