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Identity-Driven Cooperation versus Competition

Author

Listed:
  • Dennis J. Snower
  • Steven J. Bosworth

Abstract

This paper seeks to extend the domain of identity economics by exploring motivational foundations of in-group cooperation and out-group competition. On this basis, we explore the reflexive interaction between individual economic decisions and social identities in response to technological change in market economies. Our analysis explores how technological change falling on marketable goods and services, rather than non-market caring relationships, leads to a restructuring of identities, which increases the scope of individualism and promotes positional competition at the expense of caring activities. Since positional competition generates negative externalities while caring activities create positive ones, these developments have important welfare implications.

Suggested Citation

  • Dennis J. Snower & Steven J. Bosworth, 2016. "Identity-Driven Cooperation versus Competition," American Economic Review, American Economic Association, vol. 106(5), pages 420-424, May.
    • Handle: RePEc:aea:aecrev:v:106:y:2016:i:5:p:420-24
    Note: DOI: 10.1257/aer.p20161041
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    References listed on IDEAS

    as
    1. Bosworth, Steven J. & Singer, Tania & Snower, Dennis J., 2016. "Cooperation, motivation and social balance," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PB), pages 72-94.
    2. Dennis J. Snower & Steven J. Bosworth, 2016. "Identity-Driven Cooperation versus Competition," American Economic Review, American Economic Association, vol. 106(5), pages 420-424, May.
    3. Dennis J. Snower & Steven J. Bosworth, 2016. "Identity-Driven Cooperation versus Competition," American Economic Review, American Economic Association, vol. 106(5), pages 420-424, May.
    4. Akerlof George A & Kranton Rachel, 2010. "Identity Economics," The Economists' Voice, De Gruyter, vol. 7(2), pages 1-3, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Dennis J. Snower & Steven J. Bosworth, 2016. "Identity-Driven Cooperation versus Competition," American Economic Review, American Economic Association, vol. 106(5), pages 420-424, May.
    2. Fleurbaey, Marc & Kanbur, Ravi & Viney, Brody, "undated". "Social Externalities and Economic Analysis," Applied Economics and Policy Working Paper Series 309990, Cornell University, Department of Applied Economics and Management.
    3. Grosch, Kerstin & Ibañez, Marcela & Viceisza, Angelino, 2022. "Competition and prosociality: A lab-in-the-field experiment in Ghana," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 99(C).
    4. Fleurbaey, Marc & Kanbur, Ravi & Viney, Brody, 2020. "Social Externalities and Economic Analysis," Working Papers 309990, Cornell University, Department of Applied Economics and Management.
    5. Jiabin Wu, 2021. "Stochastic Value Formation," Dynamic Games and Applications, Springer, vol. 11(3), pages 597-611, September.
    6. Marcus Dittrich & Bianka Mey, 2023. "Voluntary labour supply by birth cohort: empirical evidence from Germany," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(2), pages 389-410, May.
    7. Marc Fleurbaey & Ravi Kanbur & Dennis Snower, 2025. "Efficiency and equity in a socially-embedded economy," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 79(1), pages 1-56, February.
    8. Snower, Dennis J. & Bosworth, Steven J., 2021. "Economic, social and political fragmentation: Linking knowledge-biased growth, identity, populism and protectionism," European Journal of Political Economy, Elsevier, vol. 67(C).
    9. ,, 2019. "The Interplay of Economic, Social and Political Fragmentation," CEPR Discussion Papers 14111, C.E.P.R. Discussion Papers.
    10. Schütt, Christoph A., 2023. "The effect of perceived similarity and social proximity on the formation of prosocial preferences," Journal of Economic Psychology, Elsevier, vol. 99(C).
    11. Colin Jennings & Elizabeth Ralph-Morrow, 2020. "Selective tolerance and the radical right," Rationality and Society, , vol. 32(2), pages 144-167, May.
    12. Steven Jacob Bosworth & Dennis J. Snower, 2019. "The interplay of economic, social and political fragmentation," Economics Discussion Papers em-dp2019-17, Department of Economics, University of Reading.
    13. Fleurbaey, Marc & Kanbur, Ravi & Snower, Dennis, "undated". "Efficiency and Equity in a Society-Economy Integrated Model," Working Papers 313754, Cornell University, Department of Applied Economics and Management.
    14. Carvalho, Jean-Paul & Pradelski, Bary SR, 2022. "Identity and underrepresentation: Interactions between race and gender," Journal of Public Economics, Elsevier, vol. 216(C).

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    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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