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Labelling, homophily and preference evolution

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  • Jiabin Wu

    (University of Oregon)

Abstract

We consider a population of agents whose preference types are unobservable but imperfectly correlated with certain observable labels such as customs, languages, and origins. In addition, the matching process exhibits homophily: agents tend to interact with those who share the same labels. We show that labelling and homophily interact in a non-trivial way to influence the evolution of preferences, which cannot be accounted for in the extant literature.

Suggested Citation

  • Jiabin Wu, 2020. "Labelling, homophily and preference evolution," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(1), pages 1-22, March.
    • Handle: RePEc:spr:jogath:v:49:y:2020:i:1:d:10.1007_s00182-019-00672-6
    DOI: 10.1007/s00182-019-00672-6
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    6. Astorne, Carmen, 2023. "Noisy Identity and Cooperation," Journal of Economic Behavior & Organization, Elsevier, vol. 207(C), pages 203-234.

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