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Formation of Segregated and Integrated Groups

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  • Watts, Alison

Abstract

A model of group formation is presented where the number of groups is fixed and a person can only join a group if the group's members approve the person's joining. Agents have either local status preferences (each agent wants to be the highest status agent in his group) or global status preferences (each agent wants to join the highest status group that she can join). For both preference types, conditions are provided which guarantee the existence of a segregated stable partition where similar people are grouped together and conditions are provided which guarantee the existence of an integrated stable partition where dissimilar people are grouped together. Additionally, in a dynamic framework we show that if a new empty group is added to a segregated stable partition, then integration may occur.

Suggested Citation

  • Watts, Alison, 2006. "Formation of Segregated and Integrated Groups," Coalition Theory Network Working Papers 12171, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemct:12171
    DOI: 10.22004/ag.econ.12171
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    References listed on IDEAS

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    Cited by:

    1. Sergio Currarini & Matthew O. Jackson & Paolo Pin, 2009. "An Economic Model of Friendship: Homophily, Minorities, and Segregation," Econometrica, Econometric Society, vol. 77(4), pages 1003-1045, July.

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