Economics of Business Learning: The Need for Broader Perspectives in Managerial Economics
While most textbooks in managerial economics now give some coverage to business learning, and this is to be welcomed, their coverage of business learning is limited to a consideration of increases in productivity or cost reductions. Supply-side bias exists. The coverage of leading texts is reviewed. It is found that no attention is given to the underlying sources of business learning nor to phases of such learning. The ‘start-up’ phase, for example, is not specifically mentioned. Connections with productivity progress are not well explored and the possibility that business learning may depend on the duration of learning as well as the cumulative output of a business is not considered. The duration of learning is treated as an important variable in learning models developed in this paper. These models make it easier to distinguish between effects of learning on productivity or costs, and scale economies. It is also argued that more attention should be given to learning patterns of existing businesses for a change of their technique or major alteration of their product. Models, some of which involve a degree of ‘lock-in’ to existing techniques, are outlined for this purpose. In addition, other neglected microeconomic aspects of learning are considered. Lack of attention in managerial economics to learning about markets is seen as a grave shortcoming. More attention ought to be given to the alternative strategies available to a business for learning and aspects of motivation and activation for learning should not be neglected. It is then observed that the theory of optimal transfer pricing in multi-divisional firms makes no allowance for learning by the divisions. If learning is important, this is a further shortcoming.
|Date of creation:||Apr 2004|
|Contact details of provider:|| Postal: St. Lucia, Qld. 4072|
Phone: +61 7 3365 6570
Fax: +61 7 3365 7299
Web page: http://www.uq.edu.au/economics/index.html
More information through EDIRC
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.:
- Tisdell, Clement A. & Alauddin, Mohammad, 2002. "Market-Oriented Reforms in Bangladesh and their Impact on Poverty?," Economic Theory, Applications and Issues Working Papers 90521, University of Queensland, School of Economics.
When requesting a correction, please mention this item's handle: RePEc:ags:uqseet:90532. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.