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

Larry Karp and In Ho Lee

No 25108, CUDARE Working Papers from University of California, Berkeley, Department of Agricultural and Resource Economics

Abstract: If agents learn-by-doing and are myopic, less advanced firms might adopt new technologies while more advanced firms stick with the old technology. This kind of overtaking can also occur if agents are forward looking and have high discount rates. However, overtaking never occurs if agents are sufficiently patient. A finite discount rate increases the set of states at which agents adopt new technologies, so more patient agents tend to upgrade their technology more frequently.

Keywords: International Development; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 26
Date: 2000
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https://ageconsearch.umn.edu/record/25108/files/wp000857.pdf (application/pdf)

Related works:
Journal Article: Learning-by-Doing and the Choice of Technology: The Role of Patience (2001)
Working Paper: Learning-by-Doing and the Choice of Technology: the Role of Patience (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ucbecw:25108

DOI: 10.22004/ag.econ.25108

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