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

Larry Karp and In Ho Lee

Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series from Department of Agricultural & Resource Economics, UC Berkeley

Abstract: If agents learn-by-doing and are myopic, less advanced firms might adopt new technologies while more advanced ¿rms 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: learning-by-doing; overtaking; leapfrogging; technology adoption; eco-nomic (search for similar items in EconPapers)
Date: 2000-04-28
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Citations: View citations in EconPapers (1)

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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:cdl:agrebk:qt4vh9x271

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