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Learning by Doing and Multiproduction Effects over the Life Cycle: Evidence from the Semiconductor Industry

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  • Ralph Siebert

Abstract

In this study we derive a structural econometric model of learning by doing with multiproduct competition from a dynamic oligopoly game. We show the importance to account for multiproduction effects through product differentiation when measuring learning by doing. Using quarterly firm-level data for the dynamic random access memory semiconductor industry, we provide evidence that accounting for multiproduction results in lower learning effects and firms behaving more competitive in the product market. We can confirm that firms follow intertemporal production plans for investing in future cost reductions. We also find that learning effects are higher at the beginning of the life cycle.

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  • Ralph Siebert, 2002. "Learning by Doing and Multiproduction Effects over the Life Cycle: Evidence from the Semiconductor Industry," CIG Working Papers FS IV 02-23, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    • Handle: RePEc:wzb:wzebiv:fsiv02-23
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    Cited by:

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    3. Kaldasch, Joachim, 2015. "Dynamic Model of Markets of Successive Product Generations," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 10(3), pages 1-15.
    4. Qin, Ruwen & Nembhard, David A., 2010. "Workforce agility for stochastically diffused conditions--A real options perspective," International Journal of Production Economics, Elsevier, vol. 125(2), pages 324-334, June.

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    More about this item

    Keywords

    Dynamic Random Access Memory; Dynamics; Economies of Scale; Learning by Doing; Multiproduct Firms; Product Life Cycle; Product Market Competition; Semiconductors; Spillovers.;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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