When does "Learning by Doing" generate current losses?
ISSN: 1435-5469
Argitalpen urtea: 2001
Alea: 3
Zenbakia: 1
Orrialdeak: 55-69
Mota: Artikulua
Beste argitalpen batzuk: Spanish economic review
Laburpena
Abstract. We study under which conditions a learning by doing effect in the industry causes a monopolist to operate at a loss for some initial periods. Those conditions involve a parameter of the learning process, the slope of inverse demand function and the discount parameter. In order to get results, we explore the analytical solution to a T-period learning by doing model, which is also a novelty. Numerical examples are presented.