This paper studies the impact of learning by doing on shakeouts in monopolistic competition. Firms have different initial costs and set prices to maximize current profits in each period. Although all firms make positive profits at the beginning and grow for a certain period of time, shakeouts...

This paper studies the impact of learning by doing on shakeouts in monopolistic competition. Firms have different initial costs and set prices to maximize current profits in each period. Although all firms make positive profits at the beginning and grow for a certain period of time, shakeouts...