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Cultural Leaders and the Dynamics of Assimilation

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  • Zenou, Yves
  • Verdier, Thierry

Abstract

This paper studies the population dynamics of cultural traits in a model of intergenerational cultural transmission with perfectly-forward looking cultural leaders who compete for oblique socialization. When there is only one leader, we show that there exists a threshold size in terms of population above which the cultural leader becomes active. We then consider the competition between two forward-looking leaders and characterize the open-loop Nash equilibrium of this differential dynamic game. In terms of policy implications, we show that the policymaker should take into account the crucial interaction between the centralized transmission of cultural traits by leaders and the decentralized transmission of these traits by parents and peers and should differentiate between the short-term and long-term effects of a policy due to over-reactions or under-reactions of the different cultural groups.

Suggested Citation

  • Zenou, Yves & Verdier, Thierry, 2016. "Cultural Leaders and the Dynamics of Assimilation," CEPR Discussion Papers 11174, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:11174
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    More about this item

    Keywords

    Cultural substituability; Integration; Forward-looking leaders; Dynamic differential game;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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