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The Learning Curve in a Competitive Industry Author info | Abstract | Publisher info | Download info | Related research | Statistics Emmanuel Petrakis (Departamento de Economia, Universidad Carlos III de Madrid)
Eric Rasmusen (Indiana University School of Business)
Santanu Roy (Econometric Institute, Erasmus University)
Additional information is available for the following
registered author(s):
We consider the learning curve in an industry with free entry and exit, and price-taking firms. A unique equilibrium exists if the fixed cost is positive. While equilibrium profits are zero, mature firms earn rents on their learning, and, if costs are convex, no firm can profitably enter after the date the industry begins. Under some cost and demand conditions, however, firms may have to exit the market despite their experience gained earlier. Furthermore identical firms facing the same prices may produce different quantities. The market outcome is always socially efficient, even if it dictates that firms exit after learning. Finally, actual and optimal industry concentration does not always increase in the intensity of learning.
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Paper provided by EconWPA in its series Industrial Organization with number
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Date of creation: 14 Jun 1995Date of revision:
Handle: RePEc:wpa:wuwpio:9506001Note: A 70KB LaTeX file. A postscript file is available on request from Erasmuse@Indiana.edu.Contact details of provider: Web page: http://129.3.20.41
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Article Paper Petrakis, E. & Rasmusen, E. & Roy, S., 1994.
"The Learning Curve in a Competitive Industry ,"
Papers
94-004, Indiana - Center for Econometric Model Research.
Petrakis, E. & Rasmussen, E. & Roy, S., 1994.
"The Learning Curve in a Competitive Industry ,"
Papers
9433-a, Erasmus University of Rotterdam - Econometric Institute.
Find related papers by JEL classification: L - Industrial Organization
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.:
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Emmanuel Petrakis & Eric Rasmusen & Santanu Roy, 1997.
"The Learning Curve in a Competitive Industry ,"
RAND Journal of Economics ,
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[Downloadable!] (restricted)
Other versions:
Petrakis, E. & Rasmusen, E. & Roy, S., 1994.
"The Learning Curve in a Competitive Industry ,"
Papers
94-004, Indiana - Center for Econometric Model Research.
Emmanuel Petrakis & Eric Rasmusen & Santanu Roy, 1995.
"The Learning Curve in a Competitive Industry ,"
Industrial Organization
9506001, EconWPA.
[Downloadable!] Petrakis, E. & Rasmussen, E. & Roy, S., 1994.
"The Learning Curve in a Competitive Industry ,"
Papers
9433-a, Erasmus University of Rotterdam - Econometric Institute.
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"Learning-by-Doing, Market Structure and Industrial and Trade Policies ,"
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Other versions: Drew Fudenberg & Jean Tirole, 1983.
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Gautam Bhattacharya, 1984.
"Learning and the Behavior of Potential Entrants ,"
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Lucas, Robert Jr., 1988.
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Journal of Monetary Economics ,
Elsevier, vol. 22(1), pages 3-42, July.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , 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.)
Bläsi, Albrecht & Requate, Tilman, 2007.
"Subsidies for Wind Power: Surfing down the Learning Curve? ,"
Economics Working Papers
2007,28, Christian-Albrechts-University of Kiel, Department of Economics.
[Downloadable!]
Aditi Sengupta, 2009.
"Environmental Regulation and Industry Dynamics ,"
Departmental Working Papers
0903, Southern Methodist University, Department of Economics.
[Downloadable!]
Emmanuel Petrakis & Eric Rasmusen & Santanu Roy, 1995.
"The Learning Curve in a Competitive Industry ,"
Industrial Organization
9506001, EconWPA.
[Downloadable!]
Other versions:
Petrakis, E. & Rasmusen, E. & Roy, S., 1994.
"The Learning Curve in a Competitive Industry ,"
Papers
94-004, Indiana - Center for Econometric Model Research.
Petrakis, E. & Rasmussen, E. & Roy, S., 1994.
"The Learning Curve in a Competitive Industry ,"
Papers
9433-a, Erasmus University of Rotterdam - Econometric Institute.
Emmanuel Petrakis & Eric Rasmusen & Santanu Roy, 1997.
"The Learning Curve in a Competitive Industry ,"
RAND Journal of Economics ,
The RAND Corporation, vol. 28(2), pages 248-268, Summer.
[Downloadable!] (restricted) Emmanuel Petrakis & Santanu Roy, 1998.
"Cost Reducing Investment, Competition and Industry Dynamics ,"
Tinbergen Institute Discussion Papers
98-011/1, Tinbergen Institute.
[Downloadable!]
Other versions:
Petrakis, Emmanuel & Roy, Santanu, 1999.
"Cost-Reducing Investment, Competition, and Industry Dynamics ,"
International Economic Review ,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 381-401, May.
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"Investment, Externalities & Industry Dynamics ,"
Econometric Society 2004 North American Summer Meetings
144, Econometric Society.
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Choiniere, Conrad, 2002.
"Contract Structure, Learning-By-Doing And The Viability Of New Agricultural Industries ,"
2002 Annual meeting, July 28-31, Long Beach, CA
19665, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
[Downloadable!]
Bläsi, Albrecht & Requate, Till, 2005.
"Learning-by-Doing with Spillovers in Competitive Industries, Free Entry, and Regulatory Policy ,"
Economics Working Papers
2005,09, Christian-Albrechts-University of Kiel, Department of Economics.
[Downloadable!]
Peter Thompson, 2008.
"Learning by Doing ,"
Working Papers
0806, Florida International University, Department of Economics.
[Downloadable!]
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