Asymmetric Learning Spillovers
AbstractIn 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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Bibliographic InfoPaper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 93-7.
Date of creation: Apr 1993
Date of revision:
CES; economic; research; micro; data; microdata; chief; economist;
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