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What effect cost have on strategic learning equilibrium

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Now suppose that the learning takes place with spillovers; i.e., the experience of cumulative production in one firm, leading to lower costs, can be acquired, without the same experience or costs being incurred, by that firm's rivals. What effect would this have on the strategic learning equilibrium. In particular, might the incentives for strategic learning disappear?

Reference no: EM13874573

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