Learning, Complementarities, and Asynchronous Use of Technology
AbstractThis paper deals with processes that require several complementary inputs subject to improvements in quality. If after a quality upgrade one of these inputs requires a period of learning before it can be used effectively, then in general it will pay to purchase the inputs at different dates -- the purchases will be asynchronous. That is so because it is wasteful to tie up funds in the other inputs which will be underutilized until the date learning is over. We provide evidence that technology has been used asynchronously in the automobile industry, in the television broadcasting industry, in electricity supply, and in railways, and we argue that our model helps explain this evidence.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5870.
Date of creation: Jan 1997
Date of revision:
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Benhabib, Jess & Nishimura, Kazuo, 1983.
"Competitive Equilibrium Cycles,"
Working Papers, C.V. Starr Center for Applied Economics, New York University
83-30, C.V. Starr Center for Applied Economics, New York University.
- Bahk, Byong-Hong & Gort, Michael, 1993. "Decomposing Learning by Doing in New Plants," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 101(4), pages 561-83, August.
- Sheshinski, Eytan & Weiss, Yoram, 1992.
"Staggered and Synchronized Price Policies under Inflation: The Multiproduct Monopoly Case,"
Review of Economic Studies, Wiley Blackwell,
Wiley Blackwell, vol. 59(2), pages 331-59, April.
- Sheshinski, E. & Weiss, Y., 1990. "Staggered And Synchronized Price Policies Under Inflation: The Multiproduct Monopoly Case," Papers, Tel Aviv 35-90, Tel Aviv.
- Cooper, Russell & Haltiwanger, John, 1993.
"The Aggregate Implications of Machine Replacement: Theory and Evidence,"
American Economic Review, American Economic Association,
American Economic Association, vol. 83(3), pages 360-82, June.
- Russell Cooper & John Haltiwanger, 1990. "The Aggregate Implications of Machine Replacement: Theory and Evidence," NBER Working Papers 3552, National Bureau of Economic Research, Inc.
- John Haltiwanger & Russell Cooper, 1992. "The Aggregate Implications Of Machine Replacement: Theory And Evidence," Working Papers, Center for Economic Studies, U.S. Census Bureau 92-12, Center for Economic Studies, U.S. Census Bureau.
- Ricardo J. Caballero & Mohamad L. Hammour, 1994.
"On the Timing and Efficiency of Creative Destruction,"
NBER Working Papers
4768, National Bureau of Economic Research, Inc.
- Caballero, Ricardo J & Hammour, Mohamad L, 1996. "On the Timing and Efficiency of Creative Destruction," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 111(3), pages 805-52, August.
- Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 108(3), pages 551-75, August.
- Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, American Economic Association, vol. 80(3), pages 511-28, June.
- Johannes Van Biesebroeck, 2006.
"Complementarities in Automobile Production,"
NBER Working Papers
12131, National Bureau of Economic Research, Inc.
- Johannes Van Biesebroeck, 2007. "Complementarities in automobile production," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 22(7), pages 1315-1345.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.