CEU Electronic Theses and Dissertations, 2015
| Author | Reshidi, Pellumb |
|---|---|
| Title | Learning and Spillovers under Imperfect Competition |
| Summary | I analyze a model with sequential markets under the presence of learning-by-doing and learning spillovers. I focus on the role that product differentiation plays in firm competition under the presence of these joint economies, and how it impacts optimal quantities, prices and profits. Furthermore, I analyze the welfare implications of both learning-by-doing and learning spillovers. I obtain the following main results. (1) A low level of learning efficiency enhances both profits and consumer surplus, while high levels of learning efficiency may lead to a decline in profits, or even market centralization, which can explain some rather puzzling persisting market structures. (2) The presence of spillovers increases both profits and consumer surplus and in some cases has the potential to prevent market centralization. (3) The fraction of the inefficiency originating from learning-by-doing decreases as competition becomes fiercer, while the fraction of the inefficiency originating from spillovers remains a substantial part of the total inefficiency regardless of product differentiation. |
| Supervisor | Szeidl, Adam |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2015/reshidi_pellumb.pdf |
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