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Asymmetric Learning Spillovers

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  • Ron Jarmin

Abstract

In this paper, I employ a linear-quadratic model of an industry characterized by learning by doing to examine the implications of asymmetric learning spillovers. Importantly, I show that distribution of spillover benefits can influence market structure in ways that can not be seen in models where spillovers are symmetric. If spillovers are asymmetric, a tradeoff between improved industry performance and increased market concentration can arise which does not occur when they are symmetric. This tradeoff leads to a policy dilemma; whether to promote static or dynamic efficiency in markets where learning is important.

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  • Ron Jarmin, 1993. "Asymmetric Learning Spillovers," Working Papers 93-7, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:93-7
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    File URL: https://www2.census.gov/ces/wp/1993/CES-WP-93-07.pdf
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    References listed on IDEAS

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    1. A. M. Spence, 1981. "The Learning Curve and Competition," Bell Journal of Economics, The RAND Corporation, vol. 12(1), pages 49-70, Spring.
    2. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    3. Ross, David R, 1986. "Learning to Dominate," Journal of Industrial Economics, Wiley Blackwell, vol. 34(4), pages 337-353, June.
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    6. Reynolds, Stanley S, 1986. "Strategic Capital Investment in the American Aluminum Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 34(3), pages 225-245, March.
    7. Drew Fudenberg & Jean Tirole, 1983. "Learning-by-Doing and Market Performance," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 522-530, Autumn.
    8. Pankaj Ghemawat & A. Michael Spence, 1985. "Learning Curve Spillovers and Market Performance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(Supplemen), pages 839-852.
    9. Marvin B. Lieberman, 1984. "The Learning Curve and Pricing in the Chemical Processing Industries," RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 213-228, Summer.
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    Cited by:

    1. Ronald S. Jarmin, 1994. "Learning by Doing and Competition in the Early Rayon Industry," RAND Journal of Economics, The RAND Corporation, vol. 25(3), pages 441-454, Autumn.
    2. Gamal Atallah, 2005. "R&D cooperation with asymmetric spillovers," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 919-936, August.
    3. Gamal Atallah, 2002. "Vertical R&D Spillovers, Cooperation, Market Structure, and Innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(3), pages 179-209.
    4. Douglas W Dwyer, 1995. "Whittling Away At Productivity Dispersion," Working Papers 95-5, Center for Economic Studies, U.S. Census Bureau.
    5. repec:ebl:ecbull:v:12:y:2005:i:18:p:1-11 is not listed on IDEAS

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