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Learning by Doing and Multiproduction Effects Over the Life Cycle: Evidence from the Semiconductor Industry

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  • Siebert, Ralph

Abstract

In this study we derive a structural econometric model of learning by doing with multiproduct competition from a dynamic oligopoly game. We show the importance to account for multiproduction effects through product differentiation when measuring learning by doing. Using quarterly firm-level data for the dynamic random access memory semiconductor industry, we provide evidence that accounting for multiproduction results in lower learning effects and firms behaving more competitive in the product market. We can confirm that firms follow intertemporal production plans for investing in future cost reductions. We also find that learning effects are higher at the beginning of the life cycle.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3734.

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Date of creation: Feb 2003
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Handle: RePEc:cpr:ceprdp:3734

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Keywords: dynamic random access memory; dynamics; economies of scale; learning by doing; multiproduct firms; product life cycle; product market competition; semiconductors; spillovers;

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References

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Cited by:
  1. Kaldasch, Joachim, 2014. "Evolutionary Model of Moore’s Law," MPRA Paper 54397, University Library of Munich, Germany.
  2. Ana Aizcorbe & Samuel Kortum, 2004. "Moore's Law and the Semiconductor Industry: A Vintage Model," Industrial Organization 0412008, EconWPA.

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