eprintid: 25905 rev_number: 17 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/02/59/05 datestamp: 2018-04-24 11:32:59 lastmod: 2021-04-02 15:57:47 status_changed: 2019-09-19 12:29:37 type: monograph metadata_visibility: show creators_name: Bobtcheff, Catherine creators_name: Crampes, Claude creators_name: Lefouili, Yassine creators_idrefppn: 026804484 creators_idrefppn: 09100795X title: Demand Shocks, Learning-by-Doing and Exclusion ispublished: pub subjects: subjects_ECO abstract: This note examines how an exogenous industry-wide demand shock, such as the one resulting from the use of governmental subsidies, affects the exclusionary potential of learning-by-doing. We develop a two-period duopoly model in which an increase in a firm's first-period output leads to a decrease in its second-period marginal cost, and apply it to two special scenarios: one in which demand and learning technologies are linear and one in which firms are infinitely impatient. In the first scenario, we establish that a positive demand shock amplifies the exclusionary effect of learning-by-doing if and only if firms are sufficiently asymmetric in their learning abilities. In the second scenario, we emphasize the key role of the demand curvature as a determinant of the effect of a demand shock on the exclusionary potential of learning-by-doing. date: 2018-04 date_type: published publisher: TSE Working Paper official_url: http://tse-fr.eu/pub/32606 faculty: tse divisions: tse keywords: Demand shocks keywords: learning-by-doing keywords: market structure keywords: exit language: en has_fulltext: TRUE subjectsJEL: JEL_D11 subjectsJEL: JEL_L13 subjectsJEL: JEL_Q4 view_date_year: 2018 full_text_status: public monograph_type: working_paper series: TSE Working Paper volume: 18-911 place_of_pub: Toulouse pages: 13 institution: Université Toulouse 1 Capitole department: Toulouse School of Economics book_title: TSE Working Paper oai_identifier: oai:tse-fr.eu:32606 harvester_local_overwrite: department harvester_local_overwrite: faculty harvester_local_overwrite: institution harvester_local_overwrite: place_of_pub harvester_local_overwrite: pages harvester_local_overwrite: publish_to_hal harvester_local_overwrite: pending harvester_local_overwrite: creators_idrefppn oai_lastmod: 2019-09-12T14:21:42Z oai_set: tse site: ut1 publish_to_hal: FALSE citation: Bobtcheff, Catherine, Crampes, Claude and Lefouili, Yassine (2018) Demand Shocks, Learning-by-Doing and Exclusion. TSE Working Paper, n. 18-911, Toulouse document_url: https://publications.ut-capitole.fr/id/eprint/25905/1/wp_tse_911.pdf