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| Atsuo Utaka |
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| ''The Learning Curve and Durable-Goods Production'' |
| ( 2001, Vol. 12 No.5 ) |
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| We investigate the effect of a learning curve on the production of durable goods by examining a durable-goods monopolist in a two-period model. If the monopolist faces a learning curve, the model shows that the equilibrium quantity of the first- (second-) period products will be smaller (larger) than if there were no learning curve. Consequently, in cases where the original production cost is sufficiently large, the presence of a learning curve drives down total profits. |
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| Keywords: |
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
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| Manuscript Received : Oct 27 2001 | | Manuscript Accepted : Nov 07 2001 |
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