Trust, Primary Commodity Dependence and Segregation
AbstractMany third world countries seem to fail to create a growth-promoting and peaceful institutional framework and are plagued by ethnic, religious or social conflict. This paper focuses on the impact of primary commodities on group behavior and, thus, on the nature of the resulting societies. Strategies are analyzed in a basic one-shot game with two players and two strategies, in which priors vis-a-vis the other player matter. We show that poverty, foreign interference and trust influence a group's willingness to cooperate. Under some circumstances (partial) segregation and (political) strife prove to be utility-maximizing and equilibrium strategies.
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Bibliographic InfoPaper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 03/190.
Length: 25 pages
Date of creation: Aug 2003
Date of revision:
Non Cooperative Games; Natural Resources; Trust.;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
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