Entry, Exit, and Diffusion with Learning by Doing.

Boyan Jovanovic; Saul Lach

Entry, Exit, and Diffusion with Learning by Doing.

Boyan Jovanovic, Saul Lach^*

^*Corresponding author for this work

Department of Economics

Research output: Contribution to journal › Article › peer-review

Abstract

Early entry has the advantage of higher revenues per unit of output early on. Late entry has the benefit of learning from the experience of earlier entrants, and hence lower production costs. These advantages are balanced off in a continuous time perfect foresight equilibrium. Competition generates S-shaped diffusion, and staggered entry and exit. A monopolist will innovate less than a competitive industry, but the innovation that he does do, he will do sooner.

Original language	English
Pages (from-to)	690-699
Number of pages	10
Journal	American Economic Review
Volume	79
Issue number	4
State	Published - 1 Sep 1989

Keywords

Industrial organization (Economic theory)
Technological innovations
Barriers to entry (Industrial organization)
Monopolies
Industrial costs
Economic equilibrium
Competition

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Cite this

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KW - Monopolies

KW - Industrial costs

KW - Economic equilibrium

KW - Competition

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Entry, Exit, and Diffusion with Learning by Doing.

Abstract

Keywords

UN SDGs

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