The Learning Curve and Durable-Goods Production

Atsuo Utaka ()
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Atsuo Utaka: Osaka University

Economics Bulletin, 2001, vol. 12, issue 5, 1-8

Abstract: We investigate the effect of a learning curve on the production of durable goods by examining a durable-goods monopolist in a two-period model. If the monopolist faces a learning curve, the model shows that the equilibrium quantity of the first- (second-) period products will be smaller (larger) than if there were no learning curve. Consequently, in cases where the original production cost is sufficiently large, the presence of a learning curve drives down total profits.

JEL-codes: L1 (search for similar items in EconPapers)
Date: 2001-11-07
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