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Endogenous Social Identity and Group Choice

Author

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  • Mechtel, Mario
  • Hett, Florian
  • Kröll, Markus

Abstract

This paper tests social identity theory with respect to individuals' self-identification behavior. We report results from a laboratory experiment in which subjects choose their group membership, which is interpreted as decision to identify with the respective group. Inducing a trade-off between monetary payoffs and different group identification choices we elicit the respective implicit valuations of identifying with different groups. The variation of these valuations is in line with the predictions from social identity theory: Subjects have a higher valuation for identifying with groups with a higher status and with groups to which they have a smaller social distance. Finally, we show that this behavior predicts individual out-group discrimination in allocation decisions, which has previously been shown to be associated with social identity. Overall our results provide strong support for the notion that individuals optimize behavior with respect to social identity.

Suggested Citation

  • Mechtel, Mario & Hett, Florian & Kröll, Markus, 2014. "Endogenous Social Identity and Group Choice," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100307, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc14:100307
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    References listed on IDEAS

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    1. Masella, Paolo & Meier, Stephan & Zahn, Philipp, 2014. "Incentives and group identity," Games and Economic Behavior, Elsevier, vol. 86(C), pages 12-25.
    2. Bernard, Mark & Hett, Florian & Mechtel, Mario, 2016. "Social identity and social free-riding," European Economic Review, Elsevier, vol. 90(C), pages 4-17.
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    7. Klor, Esteban F. & Shayo, Moses, 2010. "Social identity and preferences over redistribution," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 269-278, April.
    8. Roland Bénabou & Jean Tirole, 2011. "Identity, Morals, and Taboos: Beliefs as Assets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(2), pages 805-855.
    9. Drouvelis, Michalis & Nosenzo, Daniele, 2013. "Group identity and leading-by-example," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 414-425.
    10. Tomomi Tanaka & Colin F. Camerer & Quang Nguyen, 2010. "Risk and Time Preferences: Linking Experimental and Household Survey Data from Vietnam," American Economic Review, American Economic Association, vol. 100(1), pages 557-571, March.
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    Cited by:

    1. Bernard, Mark & Hett, Florian & Mechtel, Mario, 2016. "Social identity and social free-riding," European Economic Review, Elsevier, vol. 90(C), pages 4-17.
    2. Slotwinski, Michaela & Stutzer, Alois, 2015. "The Deterrent Effect of Voting Against Minarets: Identity Utility and Foreigners' Location Choice," IZA Discussion Papers 9497, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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