Reputation, Social Identity and Social Conflict
We interpret the psychology literature on social identity and examine its implications in a population partially composed of such agents. We model a population of agents from two exogenous and well defined social groups. Agents are randomly matched to play a reduced form bargaining game. We show that this struggle for resources drives a conflict through the rational destruction of surplus. We assume that the population contains both rational players and behavioral players. Behavioral players aggressively discriminate against members of the other social group. The existence and specification of the behavioral player is motivated by the social identity literature. For rational players, group membership has no payoff relevant consequences. We show that rational players can contribute to the conflict by aggressively discriminating and that this behavior is consistent with existing empirical evidence. Our paper relates to the empirical literature which finds that our measure of social heterogeneity tends to be increasing in economic variables which we interpret as signifying inefficiency. We provide an explanation that, as social groups compete for the benefits of public goods, disagreement and inefficiency can result. Our work also relates to the social conflict literature, which examines the relationship between macro level factors such as unemployment and civil disturbances. This literature finds that the amount of social conflict tends to be increasing in what we refer to as the inequitability of the environment.
|Date of creation:||14 Oct 2007|
|Contact details of provider:|| Postal: New Jersey Hall - 75 Hamilton Street, New Brunswick, NJ 08901-1248|
Phone: (732) 932-7363
Fax: (732) 932-7416
Web page: http://economics.rutgers.edu/
More information through EDIRC
References listed on IDEAS
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.:
- Keisuke Nakao, 2009. "Creation of Social Order in Ethnic Conflict," Journal of Theoretical Politics, , vol. 21(3), pages 365-394, July.
- Lorenz Goette & David Huffman & Stephan Meier, 2006.
"The Impact of Group Membership on Cooperation and Norm Enforcement: Evidence Using Random Assignment to Real Social Groups,"
American Economic Review,
American Economic Association, vol. 96(2), pages 212-216, May.
- Lorenz Goette & David Huffman & Stephan Meier, 2006. "The impact of group membership on cooperation and norm enforcement: evidence using random assignment to real social groups," Working Papers 06-7, Federal Reserve Bank of Boston.
- Götte, Lorenz & Huffman, David B. & Meier, Stephan, 2006. "The Impact of Group Membership on Cooperation and Norm Enforcement: Evidence using Random Assignment to Real Social Groups," IZA Discussion Papers 2020, Institute for the Study of Labor (IZA).
- Rapoport, Hillel & Weiss, Avi, 2003. "The optimal size for a minority," Journal of Economic Behavior & Organization, Elsevier, vol. 52(1), pages 27-45, September.
- Rapoport, Hillel & Weiss, Avi, 2001. "The Optimal Size for a Minority," IZA Discussion Papers 284, Institute for the Study of Labor (IZA).
- Hillel Rapoport & Avi Weiss, 2001. "The Optimal Size for a Minority," Working Papers 2001-01, Bar-Ilan University, Department of Economics.
- William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1203-1250.
- Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
- George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 715-753.
- Güth, Werner & Levati, M. Vittoria & Ploner, Matteo, 2008. "Social identity and trust--An experimental investigation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(4), pages 1293-1308, August.
- Werner Güth & M. Vittoria Levati & Matteo Ploner, 2007. "Social identity and trust - An experimental investigation," Papers on Strategic Interaction 2006-41, Max Planck Institute of Economics, Strategic Interaction Group.
- John Davis, 2006. "Social identity strategies in recent economics," Journal of Economic Methodology, Taylor & Francis Journals, vol. 13(3), pages 371-390.
- John B. Davis, 2005. "Social Identity Strategies in Recent Economics," Tinbergen Institute Discussion Papers 05-078/2, Tinbergen Institute.
- Vigdor, Jacob L., 2002. "Interpreting ethnic fragmentation effects," Economics Letters, Elsevier, vol. 75(2), pages 271-276, April.
- Holger Strulik, 2008. "Social composition, social conflict and economic development," Economic Journal, Royal Economic Society, vol. 118(530), pages 1145-1170, 07.
- Holger Strulik, 2004. "Social Composition, Social Conflict, and Economic Development," DEGIT Conference Papers c009_018, DEGIT, Dynamics, Economic Growth, and International Trade.
- Strulik, Holger, 2006. "Social Composition, Social Conflict, and Economic Development," Hannover Economic Papers (HEP) dp-350, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Holger Strulik, 2005. "Social Composition, Social Conflict, and Economic Development," Discussion Papers 05-16, University of Copenhagen. Department of Economics.
- Bridgman, Benjamin, 2008. "Why are ethnically divided countries poor?," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 1-18, March.
- Benjamin Bridgman, "undated". "Why Are Ethnically Divided Countries Poor?," Departmental Working Papers 2003-11, Department of Economics, Louisiana State University.
- Davis, John B., 2005. "Lawson on Veblen on Social Ontology," Working Papers and Research 2015-03, Marquette University, Center for Global and Economic Studies and Department of Economics.
- Davis, John B., 2015. "Lawson on Veblen on Social Ontology," Working Papers and Research 2015-03, Marquette University, Center for Global and Economic Studies and Department of Economics.
- Alberto Alesina & Reza Baqir & William Easterly, 1997. "Public Goods and Ethnic Divisions," NBER Working Papers 6009, National Bureau of Economic Research, Inc.
- Baqir, Reza & Easterly, William & Alesina, Alberto, 1999. "Public Goods and Ethnic Divisions," Scholarly Articles 4551797, Harvard University Department of Economics.
- Alesina, Alberto & Baqir, Reza & Easterly, William, 1999. "Public goods and ethnic divisions," Policy Research Working Paper Series 2108, The World Bank.
- Kaushik Basu, 2005. "Racial conflict and the malignancy of identity," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 3(3), pages 221-241, December.
- Basu, Kaushik, 2005. "Racial Conflict and the Malignancy of Identity," Working Papers 05-02, Cornell University, Center for Analytic Economics.
- Dan Silverman, 2004. "Street Crime And Street Culture," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 761-786, 08.
- Kreps, David M. & Wilson, Robert, 1982. "Reputation and imperfect information," Journal of Economic Theory, Elsevier, vol. 27(2), pages 253-279, August.
- David Kreps & Robert Wilson, 1999. "Reputation and Imperfect Information," Levine's Working Paper Archive 238, David K. Levine.
- Erik Lindqvist & Robert Östling, 2013. "Identity and redistribution," Public Choice, Springer, vol. 155(3), pages 469-491, June.
- Lindqvist, Erik & Östling, Robert, 2006. "Identity and Redistribution," SSE/EFI Working Paper Series in Economics and Finance 659, Stockholm School of Economics, revised 12 Jun 2007.
- Lindqvist, Erik, 2008. "Identity and Redistribution," Working Paper Series 735, Research Institute of Industrial Economics.
- Rohner, Dominic, 2011. "Reputation, group structure and social tensions," Journal of Development Economics, Elsevier, vol. 96(2), pages 188-199, November.
- Dominic Rohner, 2008. "Reputation, Group Structure and Social Tensions," HiCN Working Papers 40, Households in Conflict Network.
- Esteban, Joan & Ray, Debraj, 1999. "Conflict and Distribution," Journal of Economic Theory, Elsevier, vol. 87(2), pages 379-415, August.
- Gary Charness & Luca Rigotti & Aldo Rustichini, 2007. "Individual Behavior and Group Membership," American Economic Review, American Economic Association, vol. 97(4), pages 1340-1352, September.
- Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712. Full references (including those not matched with items on IDEAS)