China’s evolution toward an authoritarian market economy—a?predator–prey evolutionary model with?intelligent design

The following study, integrating public choice theory and evolutionary game theory, develops a predator–prey model with intelligent design to explain the “evolutionary-institutional perspective” that is a well-accepted premise in transitional economics. In the model, growth-oriented central government leaders are intelligent designers of institutional change, provincial and local officials are potential predators, and private firms are potential prey. The model finds that reductions in discriminatory policies are the major institutional contributors to China’s market miracle, whereas improvements in the rule of law and in the protection of private property rights are not needed for short-run economic growth.