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William C Miller
''Effects of variations in learning effectiveness on durable goods production''
( 2016, Vol. 36 No.4 )
Using a two period monopoly model, effects of changes in learning effectiveness on durable goods output and accumulated production are investigated. As learning increases, a firm may increase output in both periods or increase it in one period and decrease it in the other. However, accumulated production always increases in response to the learning change. Findings can explain why unit costs and accumulated production might be different across firms in an industry, subject to learning effects, if firms are ordered along a learning effectiveness continuum and are spatially separated to create local monopolies.
Keywords: learning curves, progress functions, durable goods, durability, learning
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
D4 - Market Structure and Pricing: General
Manuscript Received : Apr 11 2016 Manuscript Accepted : Dec 20 2016

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