Ml. Petit et B. Tolwinski, TECHNOLOGY SHARING CARTELS AND INDUSTRIAL-STRUCTURE, International journal of industrial organization, 15(1), 1997, pp. 77-101
The effects of ''technology sharing cartels'' on the behavior of firms
and industrial structure are analyzed. Unit production costs are assu
med to decrease with experience, which at any given time is proportion
al to the total production accumulated until that time. The ''learning
by doing'' process is examined in a context of a duopolistic market,
modeled as an infinite horizon dynamic game, for which subgame perfect
(feedback) Nash equilibria are sought. Both symmetric and asymmetric
oligopolies are examined. Since the models are non-linear and intracta
ble by analytical techniques, equilibria are computed by using a compu
tational procedure based on a policy iteration method.