Dynamics of the non linear learning curve with spillovers in a differentiated oligopoly: effects on industry structure

Abstract

We analyze the effects on industry structure of non strategic learning-by-doing with spillovers in a differentiated oligopoly a la Bertrand. The dynamics is driven by a non linear learning curve. Conditions for shakeouts are analyzed, focusing on the key factors affecting them. Policy interventions to limit shakeouts are suggested. [PUBLICATION ABSTRACT]