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The Rise of a Superpower: Endogenous Asymmetry in a Symmetric Mean Field Game of Militarization and Capital Accumulation

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  • Heng-fu Zou

Abstract

This paper develops a dynamic mean field game model in which a superpower emerges endogenously from stochastic regime shifts in capital productivity and military effectiveness. Starting from a symmetric population, countries accumulate capital and arms under strategic external ities. Rare transitions into high-productivity regimes generate sustained divergence, concentrating power in a single dominant actor. We derive the coupled Hamilton-Jacobi-Bellman and Fokker-Planck equations, simulate closed-form solutions, and illustrate how asymmetry arises without exogenous advantage. The framework provides a tractable foundation for analyzing unipolarity, arms races, and welfare divergence in decentralized strategic environments.

Suggested Citation

  • Heng-fu Zou, 2025. "The Rise of a Superpower: Endogenous Asymmetry in a Symmetric Mean Field Game of Militarization and Capital Accumulation," CEMA Working Papers 762, China Economics and Management Academy, Central University of Finance and Economics.
    • Handle: RePEc:cuf:wpaper:762
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