Animals domestication and agriculture as outcomes of collusion

Although it is known that there are circumstances where the competitive situation does not promote social welfare maximization, collusion is usually associated with firms’ strategies that decrease welfare. In this paper, using the theoretical framework of the industrial organization, I demonstrate in a model with two sectors that the economic revolution induced by the animal domestication and the agriculture is an outcome from the strengthen in collusion between human beings in the course of historical time and not vice-versa.