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Impossibility of interpersonal social identity diversification under binary preferences

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  • Naqvi, Nadeem

Abstract

Diverse identities, some socially shared, arise from a person’s affiliation with multiple overlapping communities, which are non-disjoint subsets of persons in society. I prove that identification of each individual with binary preferences or their utility function representation, commonplace in economic theory, implies the impossibility of social-identity diversification of persons. Therefore, if the goal is to explain injustices based on social identity distinctions such as racial discrimination, the conceptual reach of economic theory needs extension. I propose a generalization by assigning non-binary preferences to each individual player to achieve endogenous social diversification, to potentially serve as a basis for explaining discrimination.

Suggested Citation

  • Naqvi, Nadeem, 2012. "Impossibility of interpersonal social identity diversification under binary preferences," MPRA Paper 41365, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:41365
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    References listed on IDEAS

    as
    1. Naqvi, Nadeem, 2010. "On Non-binary Personal Preferences in Society, Economic Theory and Racial Discrimination," MPRA Paper 21522, University Library of Munich, Germany.
    2. Naqvi, Nadeem & Berdellima, Arian, 2011. "Existence of a Pareto optimal social interaction outcome with non-binary preferences," MPRA Paper 68882, University Library of Munich, Germany.
    3. José Alcantud & Carlos Alós-Ferrer, 2007. "Nash equilibria for non-binary choice rules," International Journal of Game Theory, Springer;Game Theory Society, vol. 35(3), pages 455-464, February.
    4. K. J. Arrow & A. K. Sen & K. Suzumura (ed.), 2011. "Handbook of Social Choice and Welfare," Handbook of Social Choice and Welfare, Elsevier, edition 1, volume 2, number 2.
    5. Kelsey David & Milne Frank, 1995. "The Arbitrage Pricing Theorem with Non-expected Utility Preferences," Journal of Economic Theory, Elsevier, vol. 65(2), pages 557-574, April.
    6. Amartya K. Sen, 1971. "Choice Functions and Revealed Preference," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(3), pages 307-317.
    7. Kenneth J. Arrow, 1998. "What Has Economics to Say about Racial Discrimination?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 91-100, Spring.
    8. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
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    Keywords

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    JEL classification:

    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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