Learning-By-Doing and the Choice of Technology: The Role of Patience

Larry S. Karp and .H. Lee

Discussion Paper Series In Economics And Econometrics from University of Southampton, Economics Division, School of Social Sciences

Abstract: Jovanovic and Nyarko (1996) showed that when agents learn-by-doing and are myopic, less advanced agents may adopt new technologies while more advanced firms stick with the old technology since the new technology takes time to learn. In this case, the less advanced agents might eventually overtake (or "leapfrog") the advanced agents. We show that this kind of overtaking can also occur if agents are forward looking and have high discount rates. However, if agents are sufficiently patient, overtaking cannot occur. A lower discount rate increases the set of states at which agents adopt new technologies, so more patient agents tend to upgrade their technology more frequently.

Date: 1998-01-01

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Related works:
Working Paper: Learning-by-doing and the choice of technology: the role of patience (1998)
Working Paper: Learning-by-Doing and the Choice of Technology: the Role of Patience (2000)
Journal Article: Learning-by-Doing and the Choice of Technology: The Role of Patience (2001)
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Persistent link: http://EconPapers.repec.org/RePEc:stn:sotoec:9810

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