Premium
Conflict and Trade in a Predator/Prey Economy
Author(s) -
Anderton Charles H.
Publication year - 2003
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/1467-9361.00172
Subject(s) - productivity , economics , dove , production (economics) , welfare , per capita , predatory pricing , predation , predator , economy , market economy , ecology , microeconomics , macroeconomics , monopoly , business , biology , population , demography , marketing , sociology
Predatory possibilities are integrated with production and trade in a hawk/dove model. The model shows how mutually beneficial exchange can subdue hawk playing. It also identifies conditions under which predatory possibilities are so large that hawks dominate the economy. One of the unusual results of the model is nullifying productivity growth, whereby increases in the productivity of each agent, in its area of comparative advantage, causes production and per capita welfare to fall under certain conditions. Productivity increases that lead to nullifying growth occur just before a transition cusp that, if reached, vaults the economy to a dramatically improved state.