Learning-by-Doing, Organizational Forgetting, and Industry Dynamics

David Besanko, Ulrich Doraszelski, Yaroslav Kryukov and Mark Satterthwaite

No 2009-E22, GSIA Working Papers from Carnegie Mellon University, Tepper School of Business

Abstract: Learning-by-doing and organizational forgetting have been shown to be important in a variety of industrial settings. This paper provides a general model of dynamic competition that accounts for these economic fundamentals and shows how they shape industry structure and dynamics. Previously obtained results regarding the dominance properties of firms' pricing behavior no longer hold in this more general setting. We show that forgetting does not simply negate learning. Rather, learning and forgetting are distinct economic forces. In particular, a model with learning and forgetting can give rise to aggressive pricing behavior, market dominance, and multiple equilibria, whereas a model with learning alone cannot.

Date: 2008-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.andrew.cmu.edu/user/kryukov/Learning.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.andrew.cmu.edu/user/kryukov/Learning.pdf [302 Moved Temporarily]--> https://www.andrew.cmu.edu/user/kryukov/Learning.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cmu:gsiawp:1252685262

Ordering information: This working paper can be ordered from
https://student-3k.t ... /gsiadoc/GSIA_WP.asp

Access Statistics for this paper

More papers in GSIA Working Papers from Carnegie Mellon University, Tepper School of Business Tepper School of Business, Carnegie Mellon University, 5000 Forbes Avenue, Pittsburgh, PA 15213-3890.
Bibliographic data for series maintained by Steve Spear ().