This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Monopolistic Screening under Learning By Doing

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Dennis Gaertner () (Socioeconomic Institute, University of Zurich)

Additional information is available for the following registered author(s):

Abstract

This paper investigates the design of incentives in a dynamic adverse selection framework when agents’ production technologies display learning effects and agents’ rate of learning is private knowledge. In a simple two-period model with full commitment available to the principal, we show that whether learning effects are over- or under-exploited crucially depends on whether learning effects increase or decrease the principal’s uncertainty about agents’ costs of production. Hence, what drives the over- or underexploitation of learning effects is whether more efficient agents also learn faster (so costs diverge through learning effects) or whether it is the less efficient agents who learn faster (so costs converge). Furthermore, we show that if divergence in costs through learning effects is strong enough, learning effects will not be exploited at all, in a sense to be made precise.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. 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.

File URL: http://www.soi.uzh.ch/research/wp/2007/wp0718.pdf
File Format: application/pdf
File Function: First version, 2007
Download Restriction: no

Publisher Info
Paper provided by University of Zurich, Socioeconomic Institute in its series Working Papers with number 0718.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 29 pages
Date of creation: Dec 2007
Date of revision:
Handle: RePEc:soz:wpaper:0718

Contact details of provider:
Postal: Bl�mlisalpstrasse 10, CH-8006 Z�rich
Phone: +41-1-634 22 05
Fax: +41-1-634 49 07
Email:
Web page: http://www.soi.uzh.ch/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Harry Telser).

Related research
Keywords: Asymmetric Information; Learning by Doing; Regulation;

Other versions of this item:

Find related papers by JEL classification:
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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.:
  1. Dennis Gaertner & Armin Schmutzler, 2006. "Merger Negotiations and Ex-Post Regret," Working Papers 0607, University of Zurich, Socioeconomic Institute, revised Dec 2007. [Downloadable!]
    Other versions:
  2. Fabian Waltert & Felix Schlaepfer, 2007. "The role of landscape amenities in regional development: a survey of migration, regional economic and hedonic pricing studies," Working Papers 0710, University of Zurich, Socioeconomic Institute. [Downloadable!]
  3. Helga Fehr & Thomas Epper & Adrian Bruhin & Renate Schubert, 2007. "Risk and Rationality: The Effect of Incidental Mood on Probability Weighting," Working Papers 0703, University of Zurich, Socioeconomic Institute. [Downloadable!]
  4. Adrian Bruhin & Thomas Epper, 2007. "Risk and Rationality: Uncovering Heterogeneity in Probability Distortion," Working Papers 0705, University of Zurich, Socioeconomic Institute, revised Jul 2007. [Downloadable!]
  5. Rafael Lalive & Armin Schmutzler, 2005. "Exploring the Effects of Competition for Railway Markets," Working Papers 0511, University of Zurich, Socioeconomic Institute, revised Apr 2007. [Downloadable!]
    Other versions:
  6. Hans Gersbach & Armin Schmutzler, 2006. "A Product-Market Theory of Industry-Specific Training," Working Papers 0610, University of Zurich, Socioeconomic Institute. [Downloadable!]
  7. Philippe Mahler & Rainer Winkelmann, 2005. "Single Motherhood and (Un)Equal EducationalOpportunities: Evidence for Germany," Working Papers 0512, University of Zurich, Socioeconomic Institute. [Downloadable!]
    Other versions:
  8. Hans Gersbach & Armin Schmutzler, 2006. "Foreign Direct Investment and R&D offshoring," Working Papers 0606, University of Zurich, Socioeconomic Institute. [Downloadable!]
    Other versions:
  9. Felix Schlaepfer, 2007. "An analysis of the Swiss vote on the use of genetically modified crops," Working Papers 0717, University of Zurich, Socioeconomic Institute. [Downloadable!]
  10. Rafael Lalive & Armin Schmutzler, 2006. "Entry in liberalized railway markets: The German experience," Working Papers 0609, University of Zurich, Socioeconomic Institute, revised Apr 2007. [Downloadable!]
    Other versions:
  11. Stefan Boes & Markus Lipp & Rainer Winkelmann, 2005. "Money Illusion Under Test," Working Papers 0514, University of Zurich, Socioeconomic Institute. [Downloadable!]
    Other versions:
  12. Adrian Bruhin & Rainer Winkelmann, 2007. "Happiness Functions with Preference Interdependence and Heterogeneity: The Case of Altruism within the Family," Working Papers 0702, University of Zurich, Socioeconomic Institute, revised Feb 2008. [Downloadable!]
    Other versions:
  13. Stefan Buehler & Christian Kaiser & Franz Jaeger, 2007. "On the Geographic and Cultural Determinants of Bankruptcy," Working Papers 0701, University of Zurich, Socioeconomic Institute, revised Jun 2007. [Downloadable!]
  14. Stefan Boes & Kevin Staub & Rainer Winkelmann, 2007. "Hedonic Adaptation to Living Standards and the Hidden Cost of Parental Income," Working Papers 0713, University of Zurich, Socioeconomic Institute. [Downloadable!]
  15. Gersbach, Hans & Schmutzler, Armin, 2007. "Does Globalization Create Superstars?," CEPR Discussion Papers 6222, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  16. Schwarze, Johannes & Winkelmann, Rainer, 2005. "What Can Happiness Research Tell Us About Altruism? Evidence from the German Socio-Economic Panel," IZA Discussion Papers 1487, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  17. Stefan Boes, 2007. "Nonparametric Analysis of Treatment Effects in Ordered Response Models," Working Papers 0709, University of Zurich, Socioeconomic Institute. [Downloadable!]
  18. Stefan Buehler & Armin Schmutzler, 2005. "On The Role of Access Charges Under Network Competition," Working Papers 0501, University of Zurich, Socioeconomic Institute. [Downloadable!]
  19. Stefan Boes & Rainer Winkelmann, 2006. "The Effect of Income on Positive and Negative Subjective Well-Being," Working Papers 0605, University of Zurich, Socioeconomic Institute. [Downloadable!]
  20. Samuel Muehlemann & Juerg Schweri & Rainer Winkelmann & Stefan C. Wolter, 2005. "A Structural Model of Demand for Apprentices," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  21. Daniel Halbheer & Ernst Fehr & Lorenz Goette & Armin Schmutzler, 2007. "Self-Reinforcing Market Dominance," Working Papers 0711, University of Zurich, Socioeconomic Institute. [Downloadable!]
    Other versions:
  22. Donja Darai & Dario Sacco & Armin Schmutzler, 2009. "Competition and Innovation: An Experimental Investigation," Working Papers 0608, University of Zurich, Socioeconomic Institute, revised Apr 2007. [Downloadable!]
    Other versions:
  23. Helga Fehr-Duda & Adrian Bruhin & Thomas Epper & Renate Schubert, 2007. "Rationality on the Rise: Why Relative Risk Aversion Increases with Stake Size," Working Papers 0708, University of Zurich, Socioeconomic Institute, revised Feb 2008. [Downloadable!]
  24. Armin Schmutzler, 2007. "The relation between competition and innovation – Why is it such a mess?," Working Papers 0716, University of Zurich, Socioeconomic Institute. [Downloadable!]
  25. Yves Schneider & Peter Zweifel, 2005. "Spatial Effects in Willingness-to-Pay: The Case of Two Nuclear Risks," Working Papers 0502, University of Zurich, Socioeconomic Institute, revised Sep 2007. [Downloadable!]
  26. Felix Schlaepfer, 2007. "Contingent valuation: a new perspective," Working Papers 0715, University of Zurich, Socioeconomic Institute. [Downloadable!]
    Other versions:
  27. Stefan Boes, 2007. "Count Data Models with Unobserved Heterogeneity: An Empirical Likelihood Approach," Working Papers 0704, University of Zurich, Socioeconomic Institute. [Downloadable!]
Full references

Statistics
Access and download statistics

Did you know? A tutorial is available.

This page was last updated on 2009-11-4.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.