The Learning Curve in a Competitive Industry
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.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1994|
|Contact details of provider:|| Postal: Indiana University, Center for Econometric Model Research, Department of Economics; Bloomington, IN 47405.|
Web page: http://www.indiana.edu/~econweb/
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.:
- Dasgupta, Partha & Stiglitz, Joseph E, 1988.
"Learning-by-Doing, Market Structure and Industrial and Trade Policies,"
Oxford Economic Papers,
Oxford University Press, vol. 40(2), pages 246-268, June.
- Dasgupta, Partha & Stiglitz, Joseph E, 1985. "Learning-by-doing, Market Structure and Industrial and Trade Policies," CEPR Discussion Papers 80, C.E.P.R. Discussion Papers.
- Luis M.B. Cabral & Michael H. Riordan, 1991. "Learning to Compete and Vice Versa," Papers 0017, Boston University - Industry Studies Programme.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Saman Majd & Robert S. Pindyck, 1987.
"The Learning Curve and Optimal Production Under Uncertainty,"
NBER Working Papers
2423, National Bureau of Economic Research, Inc.
- Saman Majd & Robert S. Pindyck, 1989. "The Learning Curve and Optimal Production under Uncertainty," RAND Journal of Economics, The RAND Corporation, vol. 20(3), pages 331-343, Autumn.
- Majd, Saman. & Pindyck, Robert S., 1987. "The learning curve and optimal production under uncertainty," Working papers 1948-87., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Stiglitz, Joseph E, 1984. "Price Rigidities and Market Structure," American Economic Review, American Economic Association, vol. 74(2), pages 350-355, May.
- Stokey, Nancy L, 1988.
"Learning by Doing and the Introduction of New Goods,"
Journal of Political Economy,
University of Chicago Press, vol. 96(4), pages 701-717, August.
- Nancy L Stokey, 1986. "Learning-by-Doing and the Introduction of New Goods," Discussion Papers 699, Northwestern University, Center for Mathematical Studies in Economics and Management Science, revised May 1987.
- Hopenhayn, Hugo A, 1992. "Entry, Exit, and Firm Dynamics in Long Run Equilibrium," Econometrica, Econometric Society, vol. 60(5), pages 1127-1150, September.
- Michele Boldrin & Jose A. Scheinkman, 1988. "Learning-By-Doing, International Trade and Growth: A Note," UCLA Economics Working Papers 462, UCLA Department of Economics.
- Petrakis, E. & Rasmusen, E. & Roy, S., 1994.
"The Learning Curve in a Competitive Industry,"
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.
- Roy, Santanu & Rasmusen, Eric & Petrakis, Emmanuel, 1994. "The learning curve in a competitive industry," UC3M Working papers. Economics 2914, Universidad Carlos III de Madrid. Departamento de Economía.
- Gautam Bhattacharya, 1984. "Learning and the Behavior of Potential Entrants," RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 281-289, Summer.
- Clarke, Frank H & Darrough, Masako N & Heineke, John M, 1982. "Optimal Pricing Policy in the Presence of Experience Effects," The Journal of Business, University of Chicago Press, vol. 55(4), pages 517-530, October.
- Clarida, Richard H, 1993.
"Entry, Dumping, and Shakeout,"
American Economic Review,
American Economic Association, vol. 83(1), pages 180-202, March.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Jovanovic, Boyan & Lach, Saul, 1989.
"Entry, Exit, and Diffusion with Learning by Doing,"
American Economic Review,
American Economic Association, vol. 79(4), pages 690-699, September.
- Dilip Mookherjee & Debraj Ray, 1991. "Collusive Market Structure Under Learning-By-Doing and Increasing Returns," Review of Economic Studies, Oxford University Press, vol. 58(5), pages 993-1009.
- 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.
- A. M. Spence, 1981. "The Learning Curve and Competition," Bell Journal of Economics, The RAND Corporation, vol. 12(1), pages 49-70, Spring.
- Spence, Michael, 1984. "Cost Reduction, Competition, and Industry Performance," Econometrica, Econometric Society, vol. 52(1), pages 101-121, January.
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
- Hugo A. Hopenhayn, 1993. "The shakeout," Economics Working Papers 33, Department of Economics and Business, Universitat Pompeu Fabra.
- Pankaj Ghemawat & A. Michael Spence, 1985. "Learning Curve Spillovers and Market Performance," The Quarterly Journal of Economics, Oxford University Press, vol. 100(Supplemen), pages 839-852.
- Kenneth J. Arrow, 1962. "The Economic Implications of Learning by Doing," Review of Economic Studies, Oxford University Press, vol. 29(3), pages 155-173.
- Panzar, John C., 1989. "Technological determinants of firm and industry structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 1, pages 3-59 Elsevier.
- Robert H. Smiley & S. Abraham Ravid, 1983. "The Importance of Being First: Learning Price and Strategy," The Quarterly Journal of Economics, Oxford University Press, vol. 98(2), pages 353-362.
When requesting a correction, please mention this item's handle: RePEc:fth:indian:94-004. 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: (Thomas Krichel)
If references are entirely missing, you can add them using this form.