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The optimal size for a minority

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  • Rapoport, Hillel
  • Weiss, Avi

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

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File URL: http://www.sciencedirect.com/science/article/pii/S0167-2681(02)00195-6
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Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 52 (2003)
Issue (Month): 1 (September)
Pages: 27-45

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Handle: RePEc:eee:jeborg:v:52:y:2003:i:1:p:27-45
Contact details of provider: Web page: http://www.elsevier.com/locate/jebo

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

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  1. Ben-Ner, Avner & Putterman, Louis, 2000. "On some implications of evolutionary psychology for the study of preferences and institutions," Journal of Economic Behavior & Organization, Elsevier, vol. 43(1), pages 91-99, September.
  2. Iannaccone, Laurence R, 1992. "Sacrifice and Stigma: Reducing Free-Riding in Cults, Communes, and Other Collectives," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 271-91, April.
  3. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 715-753.
  4. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-48, June.
  5. George J. Borjas, 1995. "The Economic Benefits from Immigration," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 3-22, Spring.
  6. van Dijk, Frans & van Winden, Frans, 1997. "Dynamics of social ties and local public good provision," Journal of Public Economics, Elsevier, vol. 64(3), pages 323-341, June.
  7. Eli Berman, 2000. "Sect, Subsidy, and Sacrifice: An Economist's View of Ultra-Orthodox Jews," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 905-953.
  8. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
  9. James E. Rauch & Vitor Trindade, 2002. "Ethnic Chinese Networks In International Trade," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 116-130, February.
  10. R. M. Isaac & J. M. Walker, 2010. "Group size effects in public goods provision: The voluntary contribution mechanism," Levine's Working Paper Archive 310, David K. Levine.
  11. Joel M. Guttman & Shmuel Nitzan & Uriel Spiegel, 1992. "Rent Seeking And Social Investment In Taste Change," Economics and Politics, Wiley Blackwell, vol. 4(1), pages 31-42, 03.
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Cited by:

  1. Gil Epstein & Yosef Mealem, 2010. "Interactions between local and migrant workers at the workplace," CReAM Discussion Paper Series 1016, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. 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).
  3. 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).
  4. Smith, John, 2009. "Reputation, social identity and social conflict," MPRA Paper 18082, University Library of Munich, Germany.
  5. repec:iza:izadps:dp483 is not listed on IDEAS
  6. Gil S. Epstein & Ira N Gang, 2006. "Migrants, Ethnicity and Strategic Assimilation," Departmental Working Papers 200630, Rutgers University, Department of Economics.
  7. Michaeli, Moti, 2015. "Group Formation, In-group Bias and the Cost of Cheating," Economics Working Papers MWP2015/04, European University Institute.
  8. Gil S. Epstein & Ira Gang, 2004. "Ethnic Networks and International Trade," Departmental Working Papers 200425, Rutgers University, Department of Economics.
  9. Amin, Mohammad & Mattoo, Aaditya, 2005. "Does temporary migration have to be permanent?," Policy Research Working Paper Series 3582, The World Bank.
  10. Sawchuk, Lawrence A. & Tripp, Lianne & Melnychenko, Ulianna, 2013. "The Jewish Advantage and Household Security: Life Expectancy among 19th Century Sephardim of Gibraltar," Economics & Human Biology, Elsevier, vol. 11(3), pages 360-370.

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