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Journal of Evolutionary Economics

, Volume 14, Issue 1, pp 85–98 | Cite as

Learning by doing, spillovers and shakeouts

  • Jim Y. Jin
  • Juan Perote-Peña
  • Michael TroegeEmail author
Article

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.

Keywords:

Market evolution Learning by doing Spillover Shakeout 

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Copyright information

© Springer-Verlag Berlin/Heidelberg 2004

Authors and Affiliations

  • Jim Y. Jin
    • 1
  • Juan Perote-Peña
    • 2
  • Michael Troege
    • 3
    Email author
  1. 1.Department of EconomicsUniversity of St. AndrewsSt. AndrewsScotland
  2. 2.Departamento de Economía y EmpresaUniversidad Pablo de Olavide de SevillaSevillaSpain
  3. 3.ESCP-EAP, 79Paris, Cedex 11France

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