Projektdetails
Abstract
Various empirical studies have shown that learning-by-doing and spillovers are prevalent in the semiconductor industry. Although all sub-industries (for example, microprocessor, flash memory or dynamic random access memory (DRAM) industry) are characterized by these effects there is a variety of market structures. The microprocessor industry is dominated by two large firms. In the flash memory industry there are only a few firms and in the DRAM industry there are a larger number of suppliers with nearly the same market shares. Semiconductors are a key input for electronic goods like computers, consumer electronics, communications equipment, industrial applications and cars. Thus, they are an important input to several high-technology industries and in particular, DRAM components are usually thought of as technology drivers. The aim of the project is to investigate the implications of learning effects and (a)symmetric market structures on market power and competition policy. We will provide a dynamic oligopolistic model of firm behavior with learning-by-doing and spillovers. Additionally, we consider asymmetries in firms" behavior like first-mover advantages. With firm-specific data we will estimate a system of demand and supply equations in order to empirically investigate price-cost margins in the presence of learning-by-doing, spillovers, (a)symmetric market structure and/or (a)symmetric market conduct. We expect the consequences on price-cost margins to be different and wish to quantify the magnitude of learning effects and asymmetry on price-cost margins.
Status | Abgeschlossen |
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Tatsächlicher Beginn/ -es Ende | 9/12/04 → 31/12/06 |