Categorical Cognition: A Psychological Model of Categories and Identification in Decision Making
There is a wealth of research in psychology demonstrating that agents process information with the aid of categories. In this paper we study this phenomenon in two parts. First, we build a model of how experiences are sorted into categories and how categorization affects decision making. Second, we analyze the personal biases that result from categorization, in economic contexts. We show that discrimination can result from such cognitive processes even when there is no malevolent taste to do so and workers' qualifications are fully observable. The model also provides a framework that is equipped to investigate the social psychological concept of identity, where identity is viewed as self-categorization.
|Date of creation:||Mar 2003|
|Publication status:||published as Fryer, Ronald and M. Jackson. “Categorical Cognition: A Psychological Model of Categories and Identification in Decision Making: An Extended Abstract." Proceedings of the 9th conference on Theoretical Aspects of Rationality and Knowledge (2003): 29-34.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
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.:
- Gilboa,Itzhak & Schmeidler,David, 2001.
"A Theory of Case-Based Decisions,"
Cambridge University Press, number 9780521802345, December.
- Moro, Andrea & Norman, Peter, 2004.
"A general equilibrium model of statistical discrimination,"
Journal of Economic Theory,
Elsevier, vol. 114(1), pages 1-30, January.
- Moro,A. & Norman,P., 2001. "A general equilibrium model of statistical discrimination," Working papers 4, Wisconsin Madison - Social Systems.
- Nicholas Barberis & Andrei Shleifer, 2000.
NBER Working Papers
8039, National Bureau of Economic Research, Inc.
- Jackson, Matthew O. & Kalai, Ehud, 1997.
"Social Learning in Recurring Games,"
Games and Economic Behavior,
Elsevier, vol. 21(1-2), pages 102-134, October.
- Kenneth Arrow, 1971. "The Theory of Discrimination," Working Papers 403, Princeton University, Department of Economics, Industrial Relations Section..
- Philippe Jehiel, 2005.
"Analogy-based Expectation Equilibrium,"
- Kim-Sau Chung, 2000. "Role Models and Arguments for Affirmative Action," American Economic Review, American Economic Association, vol. 90(3), pages 640-648, June.
- Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
- Roland G. Fryer & Steven D. Levitt, 2004.
"Understanding the Black-White Test Score Gap in the First Two Years of School,"
The Review of Economics and Statistics,
MIT Press, vol. 86(2), pages 447-464, May.
- Roland G. Fryer, Jr. & Steven D. Levitt, 2002. "Understanding the Black-White Test Score Gap in the First Two Years of School," NBER Working Papers 8975, National Bureau of Economic Research, Inc.
- George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 715-753.
- Phipps Arabie, 1991. "Was euclid an unnecessarily sophisticated psychologist?," Psychometrika, Springer;The Psychometric Society, vol. 56(4), pages 567-587, December.
- Matthew Rabin & Joel L. Schrag, 1999. "First Impressions Matter: A Model of Confirmatory Bias," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 37-82.
- Cornell, Bradford & Welch, Ivo, 1996. "Culture, Information, and Screening Discrimination," Journal of Political Economy, University of Chicago Press, vol. 104(3), pages 542-571, June.
- Hanming Fang, 2001. "Social Culture and Economic Performance," American Economic Review, American Economic Association, vol. 91(4), pages 924-937, September.
- repec:fth:harver:1908 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:9579. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.