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The Optimal Size for a Minority

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Author Info
Rapoport, Hillel () (Department of Economics, Bar-Ilan University)
Weiss, Avi (Department of Economics, Bar-Ilan University and IZA, Bonn)

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Abstract

We investigate a setting in which members of a population, bifurcated into a majority and a minority, transact with randomly matched partners. All members are uniformly altruistic, and each transaction can be carried out cooperatively or through a market mechanism, with cooperative transactions saving on transaction costs. Externalities are introduced, whereby cooperation by members of one group and the relative size of that group, affect the incentives to cooperate by members of the other group. Under these conditions, we determine the optimal size of the minority from the minority’s perspective, and consider the conditions under which such a size might be attained. The model provides insights on social conflicts both between groups and within groups.

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File URL: ftp://repec.iza.org/RePEc/Discussionpaper/dp284.pdf
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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 284.

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Length: 39 pages
Date of creation: Apr 2001
Date of revision:
Handle: RePEc:iza:izadps:dp284

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Related research
Keywords: Altruism; minorities; ethnic groups; religious groups; relative group size; social conflicts;

Other versions of this item:

Find related papers by JEL classification:
D64 - Microeconomics - - Welfare Economics - - - Altruism
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Epstein, Gil S. & Gang, Ira N., 2008. "Ethnicity, Assimilation and Harassment in the Labor Market," IZA Discussion Papers 3591, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Amin, Mohammad & Mattoo, Aaditya, 2005. "Does temporary migration have to be permanent?," Policy Research Working Paper Series 3582, The World Bank. [Downloadable!]
  3. Hillel Rapoport & Avi Weiss, 2001. "Cooperative Minorities and Intergroup Hostility," Annales d'Economie et de Statistique, ADRES, issue 63-64, pages 10, Juillet-D. [Downloadable!]
  4. John Smith, 2007. "Reputation, Social Identity and Social Conflict," Departmental Working Papers 200709, Rutgers University, Department of Economics. [Downloadable!]
    Other versions:
  5. Gradstein, Mark & Schiff, Maurice, 2004. "The Political Economy of Social Exclusion with Implications for Immigration Policy," IZA Discussion Papers 1087, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Rapoport, Hillel & Weiss, Avi, 2002. "In-Group Cooperation in a Hostile Environment: An Economic Perspective on Some Aspects of Jewish Life in (Pre-Modern) Diaspora," IZA Discussion Papers 483, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Epstein, Gil S. & Gang, Ira N., 2004. "Ethnic Networks and International Trade," IZA Discussion Papers 1232, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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This page was last updated on 2009-11-30.

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