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Temporary Protection and Technology Choice under the Learning Curve *
Author(s) -
Song E. Young
Publication year - 2005
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.2005.00511.x
Subject(s) - cournot competition , learning curve , scope (computer science) , competition (biology) , economics , microeconomics , learning effect , industrial organization , subject (documents) , computer science , management , ecology , biology , programming language , library science
This paper examines the effects of temporary protection in a model of Cournot competition under the learning curve. We show that when the protected firm can choose among multiple technologies subject to different scopes for learning, protection may hurt the long‐run competitiveness of the firm by inducing it to choose a technology with little scope for learning.