Learning by doing, spillovers and shakeouts

Jim Yongtao Jin, J Perote-Peña, M Troege

    Research output: Contribution to journalArticlepeer-review

    11 Citations (Scopus)

    Abstract

    This paper studies industry evolution driven by non strategic learning by doing and spillovers. We characterize a dynamic process of cost and output changes and its effect on welfare and industry profits. The paper gives conditions for shakeouts to occur and analyzes the key factors affecting these conditions. Since shakeouts could lead to a long-run social loss due to higher market concentration, there is a role for a government to play in limiting unnecessary shakeouts. The most effective way to do so is to enhance spillovers.

    Original languageEnglish
    Pages (from-to)85-98
    Number of pages14
    JournalJournal of Evolutionary Economics
    Volume14
    DOIs
    Publication statusPublished - Jan 2004

    Keywords

    • market evolution
    • learning by doing
    • spillover
    • shakeout
    • MARKET PERFORMANCE
    • FIRM SURVIVAL
    • LIFE-CYCLE
    • CURVE
    • EVOLUTION
    • INDUSTRY
    • COMPETITION
    • OLIGOPOLY
    • DIFFUSION
    • ENTRY

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