The Doleful Dynamics of Competition: Inequality and Fakery in Modernity

Abstract

The article outlines a general theory of the dynamics of competition. On-going competition generates unhappiness and inequality in spite of economic growth. The circular and cumulative processes involved include vesting and entrenching, the unfair ways and means that are used to succeed and to secure future success. The competitive process also encourages shirking responsibility for the social costs of private gains. As competition continues, fake institutions evolve that hide the iniquities, thereby reinforcing the folly of competition.

Keywords:

• competition dynamics
• vesting success
• entrenching success
• shirking costs
• fake institutions
• folly

Acknowledgments

Phillip O’Hara and Jon Wisman made helpful comments.