The Kim Dynasty vs. the Stationary Bandit Model
By Bryan Caplan
Question from the final exam for my graduate Public Choice class:
The Kim family has ruled North Korea for three generations. Doesn’t the stationary bandit model imply that the country should be prospering? If so, what’s wrong with the stationary bandit model? If not, why not?
No one gave quite the answer I was looking for. Care to share yours?