2022
Authors
Accinelli, E; Martins, F; Pinto, AA; Afsar, A; Oliveira, BMPM;
Publication
JOURNAL OF MATHEMATICAL SOCIOLOGY
Abstract
We introduce an evolutionary dynamical model for corruption in a democratic state describing the interactions between citizens, government and officials, where the voting power of the citizens is the main mechanism to control corruption. Three main scenarios for the evolution of corruption emerge depending on the efficiency of the institutions and the social, political, and economic characteristics of the State. Efficient institutions can create a corruption intolerant self-reinforcing mechanism. The lack of political choices, weaknesses of institutions and vote buying can create a self-reinforcing mechanism of corruption. The ambition of the rulers can induce high levels of corruption that can be fought by the voting power of the citizens creating corruption cycles.
2022
Authors
Soeiro, R; Pinto, AA;
Publication
MATHEMATICS
Abstract
In two-action generalized polymatrix games, Nash equilibria are support-type-symmetric, i.e., determined by supports for each type of player. We show that such a property does not generalize straightforwardly for games with at least three actions or where interaction weights have different signs (neither all positive nor negative). A non-trivial condition on interaction weights must be satisfied, which may go unnoticed as it is trivially satisfied for: (i) two-action games, (ii) conformity games, and (iii) congestion games. We derive this condition and the corresponding simplified analytic equation for mixed strategies.
2020
Authors
Osorio, A; Pinto, A;
Publication
JOURNAL OF PUBLIC ECONOMIC THEORY
Abstract
Recent years witnessed an increase in income inequality. Several explanations have been put forward. In the present paper, we consider a series of technologically related events that have been crucial for the increased income inequality, that is, public R&D incentives, increasing horizontal integration and spillover effects. We found that public R&D incentives and the increasing horizontal integration have biased the income distribution towards the top income group. In particular, the high-skilled workers involved in the R&D process have benefited enormously from this process. Similarly, capital owners have seen an increase in their profits, because of the reduction in product market competition and technological improvements in the production process. We found the effect of knowledge spillovers to be less clear-cut. We conclude discussing the implications of our results and suggesting possible solutions to the increasing income inequality. We call for the creation of supranational institutions, and for stricter legislation on competition and antitrust policy.
2021
Authors
Araujo, A; Maldonado, WL; Pinheiro, D; Pinto, AA; Soltanahmadi, MC;
Publication
INTERNATIONAL JOURNAL OF ECONOMIC THEORY
Abstract
We propose a refinement process of dynamic equilibria based on small random perturbations (SRPs) of the backward perfect foresight (bpf) equilibrium map in a class of one-step, forward-looking dynamic models. An equilibrium is selected if its stationary measure is the limit of the stationary measures associated with the processes generated by the SRPs of the bpf maps, as the perturbation size approaches 0. We show that, for full measure sets of parameter values of a large class of one-parameter families of unimodal bpf maps, only determinate cycles or the chaotic sunspot equilibrium defined by Araujo and Maldonado (2000) is selected. Two examples are provided illustrating such refinement process.
2022
Authors
Accinelli, E; Martins, F; Pinto, AA;
Publication
JOURNAL OF EVOLUTIONARY ECONOMICS
Abstract
We study an evolutionary dynamics for the contributions by agents to a common/public good in a generalized version of Baliga and Maskin's environmental protection model. The dynamical equilibria consist of three scenarios: a single agent contributing to preserve the good with its optimal contribution level, and all the other agents being free-riders: a group of agents with the same optimal contribution level contributing to preserve the good, and all the other agents being free-riders; one where no agents contribute. The dynamics of the contributions can be complex but we prove that each trajectory converges to the equilibrium associated to the single agent (or group of agents) with the highest preference for the good that are contributing since the beginning. We note that while the aggregate contribution is below the optimal contribution level of the agent with the smallest preference for the good, then the aggregate contribution is increasing and there is no free-riding. Hence, if the optimal contribution level of the agent with the smallest preference is enough to not exhaust the good too quickly and the optimal contribution level of the agent with the greatest preference is enough to preserve the good, then, in spite of the appearance of free-riding in the contributions, the good might not be exhausted.
2023
Authors
Martins, F; Pinto, AA; Zubelli, JP;
Publication
MATHEMATICS
Abstract
In this work, we consider a classic international trade model with two countries and one firm in each country. The game has two stages: in the first stage, the governments of each country use their welfare functions to choose their tariffs either: (a) competitively (Nash equilibrium) or (b) cooperatively (social optimum); in the second stage, firms competitively choose (Nash) their home and export quantities under Cournot-type competition conditions. In a previous publication we compared the competitive tariffs with the cooperative tariffs and we showed that the game is one of the two following types: (i) prisoner's dilemma (when the competitive welfare outcome is dominated by the cooperative welfare outcome); or (ii) a lose-win dilemma (an asymmetric situation where only one of the countries is damaged in the cooperative welfare outcome, whereas the other is benefited). In both scenarios, their aggregate cooperative welfare is larger than the aggregate competitive welfare. The lack of coincidence of competitive and cooperative tariffs is one of the main difficulties in international trade calling for the establishment of trade agreements. In this work, we propose a welfare-balanced trade agreement where: (i) the countries implement their cooperative tariffs and so increase their aggregate welfare from the competitive to the cooperative outcome; (ii) they redistribute the aggregate cooperative welfare according to their relative competitive welfare shares. We analyse the impact of such trade agreement in the relative shares of relevant economic quantities such as the firm's profits, consumer surplus, and custom revenue. This analysis allows the countries to add other conditions to the agreement to mitigate the effects of high changes in these relative shares. Finally, we introduce the trade agreement index measuring the gains in the aggregate welfare of the two countries. In general, we observe that when the gains are higher, the relative shares also exhibit higher changes. Hence, higher gains demand additional caution in the construction of the trade agreement to safeguard the interests of the countries.
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