A class of learning by doing model with multiplicative uncertainty:economic implications
ISSN: 2341-2356
Argitalpen urtea: 1997
Zenbakia: 23
Orrialdeak: 1-22
Mota: Laneko dokumentua
Beste argitalpen batzuk: Documentos de Trabajo (ICAE)
Laburpena
Learning by doing denotes the cost reduction in production that firms achieve with their output. We check if the known properties of deterministic models, concerning the behaviour of the finns, hold under uncertainty. A discrete time and finite horizon model is considered: a monopolist, facing a linear demand, maximizes the expected profit flow, with multiplicative uncertainty on the cost reduction and an upper bound for this reduction. We show analytically that some properties do hold and some others do not.