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Mutual Admiration Clubs

Author

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  • Wing Suen

Abstract

This article proposes a theory of group formation based on the motive to seek informed opinion. Because an individual evaluates whether others are informed or not using his own priors, he identifies people with similar beliefs to be more informed than those with different beliefs. The result is an equilibrium in which like‐minded individuals self‐select into distinct groups, with members of each group believing that their own group is superior. (JEL D71, D81, D83, D85)
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Suggested Citation

  • Wing Suen, 2005. "Mutual Admiration Clubs," Departmental Working Papers _173, Chinese University of Hong Kong, Department of Economics.
    • Handle: RePEc:chk:cuhked:_173
    as

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    References listed on IDEAS

    as
    1. Stephen Morris, 2001. "Political Correctness," Journal of Political Economy, University of Chicago Press, vol. 109(2), pages 231-265, April.
    2. Wing Suen, 2004. "The Self-Perpetuation of Biased Beliefs," Economic Journal, Royal Economic Society, vol. 114(495), pages 377-396, April.
    3. Matthew Gentzkow & Jesse M. Shapiro, 2006. "Media Bias and Reputation," Journal of Political Economy, University of Chicago Press, vol. 114(2), pages 280-316, April.
    4. Kevin M. Murphy & Andrei Shleifer, 2004. "Persuasion in Politics," American Economic Review, American Economic Association, vol. 94(2), pages 435-439, May.
    5. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-1451, November.
    6. Prendergast, Canice, 1993. "A Theory of "Yes Men."," American Economic Review, American Economic Association, vol. 83(4), pages 757-770, September.
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    Citations

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    Cited by:

    1. Currarini, Sergio & Matheson, Jesse & Vega-Redondo, Fernando, 2016. "A simple model of homophily in social networks," European Economic Review, Elsevier, vol. 90(C), pages 18-39.
    2. Claire L. Adida & David D. Laitin & Marie-Anne Valfort, 2015. "Religious Homophily In A Secular Country: Evidence From A Voting Game In France," Economic Inquiry, Western Economic Association International, vol. 53(2), pages 1187-1206, April.
    3. Heng Chen & Yang K. Lu & Wing Suen, 2016. "The Power Of Whispers: A Theory Of Rumor, Communication, And Revolution," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57(1), pages 89-116, February.
    4. Stone, Daniel F., 2011. "Ideological media bias," Journal of Economic Behavior & Organization, Elsevier, vol. 78(3), pages 256-271, May.

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    More about this item

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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