TY - JOUR
T1 - Savings and predation
AU - Chassang, Sylvain
AU - Miquel, Gerard Padró
PY - 2010
Y1 - 2010
N2 - We contrast the relationship between predation and the savings of its potential victim in two different simple models. In the first model, predation is an exogenous event in which savings are expropriated with some fixed probability. In such a setting, the higher the probability of expropriation the lower are savings. In the second model, we endow the predatory agent with a decision whether to expropriate or to devote his efforts to some productive endeavor. In this second model, the (endogenous) probability of expropriation can easily be positively correlated with savings. In addition, we show that predation is more damaging to the savings and utility of the victim in the second model.
AB - We contrast the relationship between predation and the savings of its potential victim in two different simple models. In the first model, predation is an exogenous event in which savings are expropriated with some fixed probability. In such a setting, the higher the probability of expropriation the lower are savings. In the second model, we endow the predatory agent with a decision whether to expropriate or to devote his efforts to some productive endeavor. In this second model, the (endogenous) probability of expropriation can easily be positively correlated with savings. In addition, we show that predation is more damaging to the savings and utility of the victim in the second model.
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U2 - 10.1111/j.1542-4774.2010.tb00534.x
DO - 10.1111/j.1542-4774.2010.tb00534.x
M3 - Article
AN - SCOPUS:77950970625
SN - 1542-4766
VL - 8
SP - 645
EP - 654
JO - Journal of the European Economic Association
JF - Journal of the European Economic Association
IS - 2-3
ER -