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Asymmetric Learning Spillovers

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  • Ron Jarmin

Abstract

In this paper, I employ a linear-quadratic model of an industry characterized by learning by doing to examine the implications of asymmetric learning spillovers. Importantly, I show that distribution of spillover benefits can influence market structure in ways that can not be seen in models where spillovers are symmetric. If spillovers are asymmetric, a tradeoff between improved industry performance and increased market concentration can arise which does not occur when they are symmetric. This tradeoff leads to a policy dilemma; whether to promote static or dynamic efficiency in markets where learning is important.

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File URL: ftp://ftp2.census.gov/ces/wp/1993/CES-WP-93-07.pdf
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Bibliographic Info

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 93-7.

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Date of creation: Apr 1993
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Handle: RePEc:cen:wpaper:93-7

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Keywords: CES; economic; research; micro; data; microdata; chief; economist;

References

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  1. Ross, David R, 1986. "Learning to Dominate," Journal of Industrial Economics, Wiley Blackwell, vol. 34(4), pages 337-53, June.
  2. Ghemawat, Pankaj & Spence, A Michael, 1985. "Learning Curve Spillovers and Market Performance," The Quarterly Journal of Economics, MIT Press, vol. 100(5), pages 839-52, Supp..
  3. Kydland, Finn, 1977. "Equilibrium solutions in dynamic dominant-player models," Journal of Economic Theory, Elsevier, vol. 15(2), pages 307-324, August.
  4. Reynolds, Stanley S, 1986. "Strategic Capital Investment in the American Aluminum Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 34(3), pages 225-45, March.
  5. A. M. Spence, 1981. "The Learning Curve and Competition," Bell Journal of Economics, The RAND Corporation, vol. 12(1), pages 49-70, Spring.
  6. Kydland, Finn, 1975. "Noncooperative and Dominant Player Solutions in Discrete Dynamic Games," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 321-35, June.
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Cited by:
  1. repec:ebl:ecbull:v:12:y:2005:i:18:p:1-11 is not listed on IDEAS
  2. Gamal Atallah, 2002. "Vertical R&D Spillovers, Cooperation, Market Structure, and Innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(3), pages 179-209.
  3. Ron Jarmin, 1993. "Learning By Doing And Competition In The Early Rayon Industry," Working Papers 93-4, Center for Economic Studies, U.S. Census Bureau.
  4. Douglas W Dwyer, 1995. "Whittling Away At Productivity Dispersion," Working Papers 95-5, Center for Economic Studies, U.S. Census Bureau.

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