Interest in Private Assets and the Voracity Effect
AbstractUsing a differential game, we analyze a multiple agent economy in which there are common and private capital stocks. Each interest group can access the common capital and its own private capital stocks but not anyone else's private capital stocks. Considering the situation in which each interest group can observe and has interest in the opponents' private capital stocks, we show the following. The capital stocks have a negative effect on the consumption of each agent. The growth rate of the common capital does not depend on the technology level of the common sector; that is there is no voracity effect. Each agent's welfare is always lower than it is in the case that each agent has no interest in the opponents' private capital stocks.
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Bibliographic InfoPaper provided by Kyoto University, Institute of Economic Research in its series KIER Working Papers with number 850.
Date of creation: Feb 2013
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More information through EDIRC
differential game; Markov-perfect equilibrium; the voracity effect;
Find related papers by JEL classification:
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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