Technology Sharing Cartels and Industrial Structure under a Rule of Thumb

Abstract

We analyse the effect of learning by doing on firm performances when profit maximization follows a rule of thumb. Three regimes are compared: the technology sharing cartels, the oligopoly with spillovers, the proprietary regime. We show the dynamic implications on the industrial structure when firm production plan is revisited period by period.Oligopoly, Cartel, Industrial Structure, Learning, Dynamic Behaviour, Rule of Thumb