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Social Assets

Author

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  • George J. Mailath

    () (Department of Economics, University of Pennsylvania)

  • Andrew Postlewaite

    () (Department of Economics, University of Pennsylvania)

Abstract

We present a model incorporating both social and economic components, and analyze their interaction. The notion of a social asset, an attribute that has value only because of the social institutions governing society, is introduced. In the basic model, agents match on the basis of income and unproductive attributes. An attribute has value in some equilibrium social institutions (matching patterns), but not in others. We then show that productive attributes (such as education) can have their value increased above their inherent productive value by some social institutions, leading to the notion of the social value of an asset.

Suggested Citation

  • George J. Mailath & Andrew Postlewaite, 2002. "Social Assets," PIER Working Paper Archive 04-025, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 04 Jun 2004.
  • Handle: RePEc:pen:papers:04-025
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    File URL: https://economics.sas.upenn.edu/sites/default/files/filevault/working-papers/04-025.pdf
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    Other versions of this item:

    • George J. Mailath & Andrew Postlewaite, 2006. "Social Assets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1057-1091, November.
    • George J. Mailath & Andrew Postlewaite, 2002. "Social Assets," PIER Working Paper Archive 06-003, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 05 Jan 2006.

    References listed on IDEAS

    as
    1. Kocherlakota, Narayana R., 1998. "Money Is Memory," Journal of Economic Theory, Elsevier, vol. 81(2), pages 232-251, August.
    2. George J. Mailath & Andrew Postlewaite, 2003. "The Social Context of Economic Decisions," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 354-362, 04/05.
    3. Cole, Harold L & Mailath, George J & Postlewaite, Andrew, 1992. "Social Norms, Savings Behavior, and Growth," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1092-1125, December.
    4. Roth, Alvin E. & Sotomayor, Marilda, 1992. "Two-sided matching," Handbook of Game Theory with Economic Applications,in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 16, pages 485-541 Elsevier.
    5. Corneo, Giacomo & Jeanne, Olivier, 1998. "Social organization, status, and savings behavior," Journal of Public Economics, Elsevier, vol. 70(1), pages 37-51, October.
    6. Diamond, Peter A., 1971. "A model of price adjustment," Journal of Economic Theory, Elsevier, vol. 3(2), pages 156-168, June.
    7. Guido Cozzi, 1998. "Culture as a Bubble," Journal of Political Economy, University of Chicago Press, vol. 106(2), pages 376-394, April.
    8. Hanming Fang, 2001. "Social Culture and Economic Performance," American Economic Review, American Economic Association, vol. 91(4), pages 924-937, September.
    9. Okuno-Fujiwara Masahiro & Postlewaite Andrew, 1995. "Social Norms and Random Matching Games," Games and Economic Behavior, Elsevier, vol. 9(1), pages 79-109, April.
    10. Michihiro Kandori, 1992. "Social Norms and Community Enforcement," Review of Economic Studies, Oxford University Press, vol. 59(1), pages 63-80.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Maria Rosaria Carillo, 2000. "The Effect of Professionalisation and the Demand for Social Status on the Adoption of New Technologies," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 473-502.
    2. Bilancini, Ennio & Boncinelli, Leonardo, 2014. "Instrumental cardinal concerns for social status in two-sided matching with non-transferable utility," European Economic Review, Elsevier, vol. 67(C), pages 174-189.
    3. Belot, Michèle & Fidrmuc, Jan, 2010. "Anthropometry of love: Height and gender asymmetries in interethnic marriages," Economics & Human Biology, Elsevier, vol. 8(3), pages 361-372, December.
    4. Michael T. Rauh, 2007. "Incentives, Solidarity, and the Division of Labor," Working Papers 2007-15, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    5. Lex Borghans & Bas ter Weel & Bruce A. Weinberg, 2008. "Interpersonal Styles and Labor Market Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    6. Fabio Maccheroni & Massimo Marinacci & Aldo Rustichini, 2012. "Social Decision Theory: Choosing within and between Groups," Review of Economic Studies, Oxford University Press, vol. 79(4), pages 1591-1636.
    7. Botticini, Maristella & Eckstein, Zvi, 2002. "From Farmers to Merchants: A Human Capital Interpretation of Jewish Economic History," IZA Discussion Papers 670, Institute for the Study of Labor (IZA).
    8. Alison Booth & Melvyn Coles, 2010. "Education, Matching, and the Allocative Value of Romance," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 744-775, June.
    9. Bjerk, David, 2009. "Beauty vs. earnings: Gender differences in earnings and priorities over spousal characteristics in a matching model," Journal of Economic Behavior & Organization, Elsevier, vol. 69(3), pages 248-259, March.
    10. Bilancini, Ennio & Boncinelli, Leonardo, 2012. "Redistribution and the notion of social status," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 651-657.
    11. Asiyeh Salehi & Neil Harris & Maryam Marzban & Elisabeth Coyne, 2015. "Confirmatory Factor Analysis of Scales Measuring Trust, and Control-Self-efficacy of Young Iranian Women," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(3), pages 1033-1047, December.
    12. Yamamura, Eiji, 2009. "Socio-economic status, gender, and spouse’s earnings: affect of family background on matching," MPRA Paper 17100, University Library of Munich, Germany.
    13. Luis Araujo & Raoul Minetti, 2007. "On The Long-Run Effects Of Fashion," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 756-769, October.
    14. Araujo, Luis & Minetti, Raoul, 2011. "Knowledge sharing and the dynamics of social capital," European Economic Review, Elsevier, vol. 55(8), pages 1109-1119.
    15. Zhang, W.-B., 2014. "Ethnic Human Capital Externalities and Inequality in a General Equilibrium Growth Model," Journal of the New Economic Association, New Economic Association, vol. 21(1), pages 33-54.

    More about this item

    Keywords

    Social assets; social capital; social arrangements; nonmarket interactions; social norms;

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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