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2PM GMT (10AM Toronto/Montréal, 11AM Rio de Janeiro, 3PM London, 4PM Zürich, 5PM Istanbul, 7:30PM New Delhi, 11PM Tokyo/Seoul)
Barton Lee (ETH Zürich) "When Growth leads to Zero-sum Conflict"
Host: Danilo Coelho
Abstract. Individuals often face a tradeoff between cooperating to expand a collective good (the “pie”) or competing to expand their share of it. We study this tradeoff as a dynamic public goods problem where the pie’s size and its shares can only be gradually changed and contributions to the pie are irreversible. In the unique subgame perfect equilibrium, growth of pie occurs but halts at an inefficiently low level, at which point perpetual conflict over the shares ensues. Growth ultimately leads to a prisoner’s dilemma stage game, but cooperation is unsustainable for any discount factor. We also explore the dynamics of growth and conflict and empirical relevance of our results.
(Joint work with Álvaro Delgado-Vega)
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Piotr Skowron (University of Warsaw) "TBA"
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