Strategic Preemption Under Shared Catastrophic Risk: The Suicide Region and the Race to Artificial General Intelligence

Fuente: arXiv
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1. Verfasser: Tan, David
Format: Preprint
Veröffentlicht: 2025
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author Tan, David
author_facet Tan, David
contents We analyze a continuous-time preemption game with shared catastrophic externalities. When the cost of catastrophe is embedded in both players' payoffs, the risk term cancels out in the equilibrium indifference condition. This creates a "suicide region" where competitive pressures force rational agents to deploy despite negative risk-adjusted net present values. We apply this framework to the race for artificial general intelligence (AGI). We show that this suicide region widens as the cost of systemic ruin grows: higher catastrophic risk does not deter the race but instead enlarges the set of conditions under which rational actors deploy despite negative social value. We characterize the resulting welfare distortion against a social planner's benchmark and demonstrate how two complementary mechanisms - private liability and prize-sharing - can close the suicide region. Private liability raises the cost of unsafe deployment while prize-sharing reduces the strategic imperative to deploy first. "Warning shots" (sub-existential disasters) will fail to deter AGI acceleration, as the winner-takes-all nature of the race remains intact.
format Preprint
id arxiv_https___arxiv_org_abs_2512_07526
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Strategic Preemption Under Shared Catastrophic Risk: The Suicide Region and the Race to Artificial General Intelligence
Tan, David
Risk Management
General Economics
Economics
General Finance
We analyze a continuous-time preemption game with shared catastrophic externalities. When the cost of catastrophe is embedded in both players' payoffs, the risk term cancels out in the equilibrium indifference condition. This creates a "suicide region" where competitive pressures force rational agents to deploy despite negative risk-adjusted net present values. We apply this framework to the race for artificial general intelligence (AGI). We show that this suicide region widens as the cost of systemic ruin grows: higher catastrophic risk does not deter the race but instead enlarges the set of conditions under which rational actors deploy despite negative social value. We characterize the resulting welfare distortion against a social planner's benchmark and demonstrate how two complementary mechanisms - private liability and prize-sharing - can close the suicide region. Private liability raises the cost of unsafe deployment while prize-sharing reduces the strategic imperative to deploy first. "Warning shots" (sub-existential disasters) will fail to deter AGI acceleration, as the winner-takes-all nature of the race remains intact.
title Strategic Preemption Under Shared Catastrophic Risk: The Suicide Region and the Race to Artificial General Intelligence
topic Risk Management
General Economics
Economics
General Finance
url https://arxiv.org/abs/2512.07526