Document de travail

Demand Shocks, Learning-by-Doing and Exclusion

Catherine Bobtcheff, Claude Crampes et Yassine Lefouili

Résumé

This note examines how an exogenous industry-wide demand shock, such as the one resulting from the use of governmental subsidies, affects the exclusionary potential of learning-by-doing. We develop a two-period duopoly model in which an increase in a firm's first-period output leads to a decrease in its second-period marginal cost, and apply it to two special scenarios: one in which demand and learning technologies are linear and one in which firms are infinitely impatient. In the first scenario, we establish that a positive demand shock amplifies the exclusionary effect of learning-by-doing if and only if firms are sufficiently asymmetric in their learning abilities. In the second scenario, we emphasize the key role of the demand curvature as a determinant of the effect of a demand shock on the exclusionary potential of learning-by-doing.

Mots-clés

Demand shocks; learning-by-doing; market structure; exit;

Codes JEL

  • D11: Consumer Economics: Theory
  • L13: Oligopoly and Other Imperfect Markets
  • Q4: Energy

Remplacé par

Catherine Bobtcheff, Claude Crampes et Yassine Lefouili, « Chocs de demande, effets d’apprentissage et exclusion », Revue Économique, vol. 70, n° 3, 2019, p. 441–453.

Référence

Catherine Bobtcheff, Claude Crampes et Yassine Lefouili, « Demand Shocks, Learning-by-Doing and Exclusion », TSE Working Paper, n° 18-911, avril 2018.

Voir aussi

Publié dans

TSE Working Paper, n° 18-911, avril 2018