Decomposition, Depletion and Learning

04 May 1987

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Learning (Depletion) is assumed to occur when unit costs fall (rise) with "experience". We consider a problem where two technologies-old (exhibiting depletion) and new (exhibiting learning) -are used to produce one good. Models, incorporating different market assumptions and diffusion of learning, will be presented. Solution techniques, using decomposition approach, will also be outlines.