We examine a competitive theory in which new ideas are introduced only when diminishing returns to the use of existing ideas sets in. After an idea is introduced, the capital associated with that idea expands, and the price of the idea falls. Once the price falls far enough, it becomes...

"We show that with common knowledge and a common rate of time preference, the potential loser can always avoid wasteful conflict through a time-consistent series of small concessions. We examine how the failure of each of these assumptions may explain why conflicts arise. We also debate which...