Experimental Economics and Game Theory Seminar for April 30

Events, Seminars | April 18, 2019

Join us for the ICES Seminar in Experimental Economics and Game Theory of the Spring 2019 semester, featuring Shlomo Weber.

Dr. Weber, of New Economic School (Russia), will discuss his paper Political Alliances and Modes of Economic Development: The Case of the Cold War in Africa (Abstract). The talk will take place on Tuesday, April 30th, from 4:00 to 5:00pm in room 5183 of Vernon Smith Hall, Arlington campus.
Visit the Seminar schedule to access the paper and to learn more about upcoming speakers.

Abstract

We use landscape theory (Axelrod and Bennett, 1993) to predict African countries’ political alliances during the Cold War. Cold War alliances potentially had a disproportionate influence on political and economic development of African countries as the waves of independence coincided with this period. Grounded in theory, we first solve for and determine a two-group Strong Nash equilibrium partition across African countries. We then show that the Strong Nash alignment predicts voting patterns in the UN General Assembly. The marginal effect of this tacit alignment is robust across a number of different specifications. We subsequently find that the alignment is correlated with long-run development outcomes. Specifically, the correlations between the predicted alignment and development outcomes reflect the differences in the modes of development of the superpowers (the US and the USSR).

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