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Persistent Divides in Beliefs, Conflict, and Innovation

Author

Listed:
  • Alexander Mihailov

    (Department of Economics, University of Reading)

  • Masao Ogaki

    (Faculity of Economics, Keio University)

Abstract

Many Christian supporters of Mr. Donald Trump favored restrictive immigration policies against Libya, Syria and other Muslim countries during his presidency. A cause behind this seems to be a persistent divide in certain beliefs between Christianity and Islam, even though the two religions also share many common beliefs. This paper builds a simple model in which such divide over a historical fact can persist even when strong scientific evidence exists in favor of the fact and all agents are using Bayesian learning. In the model, both innovation and conflict are more likely to occur in firms with more diversified workers, while education can reduce the probability of conflict to occur. Given these results, we argue that education to honor and understand other people's beliefs (rather than educating that one particular view is rational or justified and the others are not) is beneficial for promoting innovation, in addition to impeding conflict.

Suggested Citation

  • Alexander Mihailov & Masao Ogaki, 2021. "Persistent Divides in Beliefs, Conflict, and Innovation," Keio-IES Discussion Paper Series 2021-004, Institute for Economics Studies, Keio University.
    • Handle: RePEc:keo:dpaper:2021-004
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    File URL: https://ies.keio.ac.jp/upload/DP2021-004_EN.pdf
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    References listed on IDEAS

    as
    1. Cemal Eren Arbatlı & Quamrul H. Ashraf & Oded Galor & Marc Klemp, 2020. "Diversity and Conflict," Econometrica, Econometric Society, vol. 88(2), pages 727-797, March.
    2. Cemal Eren Arbatli & Quamrul Ashraf & Oded Galor, 2013. "The Nature of Civil Conflict," Working Papers 2013-15, Brown University, Department of Economics.
    3. Kohei Kubota & Akiko Kamesaka & Masao Ogaki & Fumio Ohtake, 2013. "Cultures, Worldviews, and Intergenerational Altruism," ERSA conference papers ersa13p758, European Regional Science Association.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Masao Ogaki, 2022. "Economics of the community mechanism," The Japanese Economic Review, Springer, vol. 73(3), pages 433-457, July.

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    More about this item

    Keywords

    Bayesian learning; beliefs; diversity; education;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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