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Social Division with Endogenous Hierarchy

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  • James P. Choy

Abstract

Many societies are divided into multiple smaller groups. Certain kinds of interaction are more likely to take place within a group than across groups. I model a reputation effect that enforces these divisions. People who are observed to interact with members of different groups are believed to be less trustworthy by members of their own group. A hierarchical relationship between groups appears endogenously in equilibrium. The information requirements for my equilibrium to exist are much less demanding than the information requirements in related models. These different information requirements correspond to concrete differences between the institutions of different Indian castes.

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  • James P. Choy, 2018. "Social Division with Endogenous Hierarchy," Economic Journal, Royal Economic Society, vol. 128(615), pages 2711-2742, November.
    • Handle: RePEc:wly:econjl:v:128:y:2018:i:615:p:2711-2742
    DOI: 10.1111/ecoj.12508
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    Cited by:

    1. Lawson, Nicholas & Spears, Dean, 2021. "Those who can't sort, steal: caste, occupational mobility, and rent-seeking in rural India," Journal of Demographic Economics, Cambridge University Press, vol. 87(1), pages 107-140, March.
    2. Munshi, K., 2017. "Caste and the Indian Economy," Cambridge Working Papers in Economics 1759, Faculty of Economics, University of Cambridge.
    3. Tom Potoms & Tom Truyts, 2020. "Unhappy is the land without symbols - Group symbols in infinitely repeated public good games," Working Paper Series 1720, Department of Economics, University of Sussex Business School.
    4. Dewan, Torun & Wolton, Stephane, 2019. "A Political Economy of Social Discrimination," MPRA Paper 94394, University Library of Munich, Germany.
    5. Bharathi, Naveen & Malghan, Deepak & Rahman, Andaleeb, 2023. "Ethnic diversity and economic development with spatial segregation," Economics Letters, Elsevier, vol. 222(C).

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