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

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  • Ralph Siebert

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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Bibliographic 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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References

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Cited by:
  1. Ana Aizcorbe & Samuel Kortum, 2005. "Moore's Law and the Semiconductor Industry: A Vintage Model," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(4), pages 603-630, December.
  2. Kaldasch, Joachim, 2014. "Evolutionary Model of Moore’s Law," MPRA Paper 54397, University Library of Munich, Germany.

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