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

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Author Info
Ralph Siebert

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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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Publisher Info
Paper provided by Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG) in its series CIG Working Papers with number FS IV 02-23.

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Length: 45 pages
Date of creation: Dec 2002
Date of revision:
Handle: RePEc:wzb:wzebiv:fsiv02-23

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Related research
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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Find related papers by JEL classification:
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
L6 - Industrial Organization - - Industry Studies: Manufacturing
O3 - Economic Development, Technological Change, and Growth - - Technological Change

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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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    Other versions:
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  7. Kenneth Flamm, 1993. "Measurement of DRAM Prices: Technology and Market Structure," NBER Chapters, in: Price Measurements and Their Uses, pages 157-206 National Bureau of Economic Research, Inc. [Downloadable!]
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  16. G. Steven Olley & Ariel Pakes, 1992. "The Dynamics of Productivity in the Telecommunications Equipment Industry," NBER Working Papers 3977, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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    Other versions:
  19. Rebecca Achee Thornton & Peter Thompson, 2001. "Learning from Experience and Learning from Others: An Exploration of Learning and Spillovers in Wartime Shipbuilding," American Economic Review, American Economic Association, vol. 91(5), pages 1350-1368, December. [Downloadable!] (restricted)
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  24. Ariel Pakes & Paul McGuire, 1994. "Computing Markov-Perfect Nash Equilibria: Numerical Implications of a Dynamic Differentiated Product Model," RAND Journal of Economics, The RAND Corporation, vol. 25(4), pages 555-589, Winter. [Downloadable!] (restricted)
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  25. Dick, Andrew R, 1991. "Learning by Doing and Dumping in the Semiconductor Industry," Journal of Law & Economics, University of Chicago Press, vol. 34(1), pages 133-59, April.
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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.)

  1. Ana Aizcorbe & Samuel Kortum, 2004. "Moore's Law and the Semiconductor Industry: A Vintage Model," Industrial Organization 0412008, EconWPA. [Downloadable!]
    Other versions:
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