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Dynamics of the Non Linear Learning Curve with Spillovers in a Differentiated Oligopoly: Effects on Industry Structure

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  • Emanuela Randon

    (Department of Economics, University of Milan-Bicocca)

  • Ahmad Naimzada

    ()
    (Department of Economics, University of Milan-Bicocca)

Abstract

We analyse the effects on industry structure of non strategic learning by doing with spillovers in a differentiated oligopoly `a la Bertrand. The dynamics is driven by a non linear learning curve. Conditions for shakeouts are analysed, focusing on the key factors affecting them. Policy interventions to limit shakeouts are suggested.

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File URL: http://dipeco.economia.unimib.it/repec/pdf/mibwpaper80.pdf
File Function: First version, 2004
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Bibliographic Info

Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 80.

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Length: 11 pages
Date of creation: Oct 2004
Date of revision: Oct 2004
Handle: RePEc:mib:wpaper:80

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Keywords: Industry dynamics; Non linear learning curve; Spillover; Shakeouts;

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References

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  1. Nancy L Stokey, 1986. "Learning-by-Doing and the Introduction of New Goods," Discussion Papers 699, Northwestern University, Center for Mathematical Studies in Economics and Management Science, revised May 1987.
  2. Drew Fudenberg & Jean Tirole, 1983. "Learning-by-Doing and Market Performance," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 522-530, Autumn.
  3. Mark Rosenzweig & Andrew D. Foster, . "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Home Pages _068, University of Pennsylvania.
  4. Boyan Jovanovic & Glenn MacDonald, 1993. "The Life-Cycle of a Competitive Industry," NBER Working Papers 4441, National Bureau of Economic Research, Inc.
  5. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
  6. Cabral, Luis M B & Riordan, Michael H, 1994. "The Learning Curve, Market Dominance, and Predatory Pricing," Econometrica, Econometric Society, vol. 62(5), pages 1115-40, September.
  7. 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..
  8. Gort, Michael & Klepper, Steven, 1982. "Time Paths in the Diffusion of Product Innovations," Economic Journal, Royal Economic Society, vol. 92(367), pages 630-53, September.
  9. Martin B. Zimmerman, 1982. "Learning Effects and the Commercialization of New Energy Technologies: The Case of Nuclear Power," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 297-310, Autumn.
  10. Jim Jin & Juan Perote-Peña & Michael Troege, 2004. "Learning by doing, spillovers and shakeouts," Journal of Evolutionary Economics, Springer, vol. 14(1), pages 85-98, January.
  11. Klepper, Steven & Simons, Kenneth L, 1997. "Technological Extinctions of Industrial Firms: An Inquiry into Their Nature and Causes," Industrial and Corporate Change, Oxford University Press, vol. 6(2), pages 379-460, March.
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Cited by:
  1. Roberto ESPOSTI, 2008. "Why Should Regional Agricultural Productivity Growth Converge? Evidence from Italian Regions," Working Papers 319, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

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