Abstract
We study the evolution of beliefs that discourage productive effort. Such beliefs include concerns about the jealousy of others, beliefs in the importance of luck for success, disdain for competitive effort, and traditional supernatural beliefs in witchcraft or the evil eye. We show that when interactions are zero-sum in nature, meaning that the gains for one individual tend to come at the expense of another, demotivating beliefs that reduce effort can arise. These beliefs can make society better off in the short run but inhibit innovation in the long run, causing economic underdevelopment. We present evidence from the Democratic Republic of Congo and the World Values Survey consistent with the assumptions and predictions of the model. We find a relationship between how zero-sum an environment is (or perceived to be) and the presence of demotivating beliefs, such as concerns about jealousy and beliefs in witchcraft (in the DRC) or lower importance placed on success and weaker belief in the importance of hard work for success (globally).
The paper is joint with Augustin Bergeron, Joseph Henrich, Nathan Nunn, and Jonathan Weigel.
Invited by: Alireza Jay Naghavi
Local Organizer: Niko Jaakkola