Smith, John (2010): Reputation, social identity, and social conflict.
Download (452Kb) | Preview
We interpret the social identity literature and examine its economic implications. 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 unbiased and biased players. Biased players aggressively discriminate against members of the other social group. The existence and specification of the biased player is motivated by the social identity literature. For unbiased players, group membership has no payoff relevant consequences. We show that the unbiased players can contribute to the conflict by aggressively discriminating and that this behavior is consistent with existing empirical evidence.
|Item Type:||MPRA Paper|
|Original Title:||Reputation, social identity, and social conflict|
|Keywords:||social identity theory; social fragmentation|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L14 - Transactional Relationships; Contracts and Reputation; Networks
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D74 - Conflict; Conflict Resolution; Alliances
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games
|Depositing User:||John Smith|
|Date Deposited:||16. Jun 2010 19:11|
|Last Modified:||21. Feb 2013 00:23|
AHMED, A. (2007) Group identity, social distance and intergroup bias, Journal of Economic Psychology 28, 324-337.
AKERLOF, G., and R. KRANTON (2000) Economics and identity, Quarterly Journal of Economics 115(3), 715-753.
ALESINA, A., A. DEVLEESCHAUWER, and W. EASTERLY (2003) Fractionalization, Journal of Economic Growth 8, 155-194.
ARROW, K. (1973) The theory of discrimination, in Discrimination in Labor Markets, O. Ashenfelter and A. Rees, eds., Princeton, NJ, Princeton University Press, pp. 3-33.
BASU, K. (2005) Racial conflict and the malignancy of identity, Journal of Economic Inequality 3, 221-241.
BENHABIB, J., and A. RUSTICHINI (1996) Social conflict and growth, Journal of Economic Growth 1, 125-142.
BRIDGMAN, B. (2008) Why are ethnically divided countries poor? Journal of Macroeconomics 30, 1-18.
CASELLI, F., and W. COLEMAN (2006) On the theory of ethnic conflict , Working Paper, CEPR Discussion Paper No. 5622.
CHARNESS, G., L. RIGOTTI, and A. RUSTICHINI (2007) Individual behavior and group membership, American Economic Review 97(4), 1340-1352.
CHEN, Y., and X.S. LI (2009) Group identity and social preferences, American Economic Review 99(1), 431-457.
CHO, B., and D. CONNELLEY (2002) The effect of conflict and power differentials on social identity and intergroup discrimination, Working Paper.
DAVIS, J. (2006) Social identity strategies in recent economics, Journal of Economic Methodology 13(3), 371-390.
DAWES, R., A. VAN DE KRAGT, and J. ORBELL (1988) Not me or thee but we: The importance of group identity in eliciting cooperation in dilemma situations: Experimental manipulations, Acta Psychologica 68, 83-97.
DION, D. (1997) Competition and ethnic conflict, Journal of Conflict Resolution 41(5), 638-648.
EASTERLY, W., and R. LEVINE (1997) Africa's growth tragedy: Policies and ethnic divisions, Quarterly Journal of Economics 112(4), 1203-1250.
ESTEBAN, J., and D. RAY (1994) On the measurement of polarization, Econometrica 62(4), 819-851.
ESTEBAN, J., and D. RAY (1999) Conflict and distribution, Journal of Economic Theory 87, 379-415.
ESTEBAN, J., and D. RAY (2008) On the salience of ethnic conflict, American Economic Review 98(5), 2185-2201.
ESTEBAN, J., and D. RAY (2009) A model of ethnic conflict, Journal of the European Economic Association, forthcoming.
FALK, A., and J. ZWEIMULLER (2005) Unemployment and right-wing extremist crime, Working Paper, IZA and Bonn.
FEARON, J., and D. LAITIN (1996) Explaining interethnic cooperation, American Political Science Review 90(4), 715-735.
FERRARO, P., and R. CUMMINGS (2007) Cultural diversity, discrimination, and economic outcomes: An experimental analysis, Economic Inquiry 45(2), 217-232.
GOETTE, L., D. HUFFMAN, and S. MEIER (2006) The impact of group membership on cooperation and norm enforcement: Evidence using random assignment to real social groups, American Economic Review 96(2), 212-216.
GURIN, P., T. PENG, G. LOPEZ, and B. NAGADA (1999) Context, identity and intergroup relations, in Cultural Divides: Understanding and Overcoming Group Conflict, D. Prentice and D. Miller, eds., New York: Russel Sage Foundation, pp. 133-170.
GUTH, W., M.V. LEVATI, and M. PLONER (2008) Social identity and trust: An experimental investigation, Journal of Socio-Economics 37, 1293-1308.
KIRMAN, A., and M. TESCHL (2004) On the emergence of economic identity, Revue De Philosophie Economique 9, 59-86.
KRAMER, R., and M. BREWER (1984) Effects of group identity on resource utilization in a simulated commons dilemma, Journal of Personality and Social Psychology 46, 1044-1057.
KREPS, D., and R. WILSON (1982) Reputation and imperfect information, Journal of Economic Theory 27, 253-279.
LINDQVIST, E., and R. OSTLING (2009) Identity and redistribution, Working Paper, Stockholm University.
LUBBERS, M., and P. SCHEEPERS (2001) Explaining the trend in extreme right-wing voting: Germany 1989-1998, European Sociological Review 17(4), 431-449.
MAURO, P. (1995) Corruption and growth, Quarterly Journal of Economics 110(3), 681-712.
MESSICK, D., and D. MACKIE (1989) Intergroup relations, Annual Review of Psychology 40, 45-81.
MILLER, D., J. DOWNS, and D. PRENTICE (1998). Minimal conditions for the creation of a unit relationship: The social bond between birthdaymates, European Journal of Social Psychology 28, 475-481.
MONTALVO, J., and M. REYNAL-QUEROL (2005) Ethnic diversity and economic development, Journal of Development Economics 76, 293-323.
MURDOCK, G. (1949) Social Structure, New York: Macmillan.
NAKAO, K. (2009) Creation of social order in ethnic conflict, Journal of Theoretical Politics 21(3), 365-394.
OLZAK, S. (1992) Dynamics of Ethnic Competition and Conflict, Palo Alto, CA: Stanford University Press.
OLZAK, S., S. SHANAHAN, and E. WEST (1994) School desegregation, interracial exposure, and antibusing activity in contemporary urban America, American Journal of Sociology 100(1), 196-241.
ORBELL, J., L. ZENG, and M. MULFORD (1996) Individual experience and the fragmentation of societies, American Sociological Review 61, 1018-1032.
PHELPS, E. (1972) The statistical discrimination of racism and sexism, American Economic Review 62, 659-661.
POSNER, D. (2004) Measuring ethnic fractionalization in Africa, American Journal of Political Science 48(4), 849-863.
QUILLIAN, L. (1995) Prejudice as a response to perceived group threat: Population composition and anti-immigrant and racial prejudice in Europe, American Sociological Review 60(4), 586-611.
QUILLIAN, L. (1996) Group threat and regional change in attitudes toward African-Americans, American Journal of Sociology 102(3), 816-860.
ROBINSON, J. (2001) Social identity, inequality and conflict, Economics of Governance 2, 85--99.
ROHNER, D. (2008) Reputation, group structure and social tensions, Working Paper, HiCN 40.
SCHEEPERS, P., M. GIJBERTS, and M. COENDERS (2002) Ethnic exclusion in European countries: Public opposition to civil rights for legal migrants as a response to perceived ethnic threat, European Sociological Review 18(1), 17-34.
SHAYO, M. (2009) A model of social identity with an application to political economy: Nation, class and redistribution, American Political Science Review 103(2), 147-174.
SHERIF, M., O.J. HARVEY, B.J. WHITE, W. HOOD, and C. SHERIF (1961) Intergroup Conflict and Cooperation: The Robbers Cave Experiment, Norman: University of Oklahoma Book Exchange.
SILVERMAN, D. (2004) Street crime and street culture, International Economic Review 45(3), 761-786.
SOBEL, J. (2005) Interdependent preferences and reciprocity, Journal of Economic Literature 43(2), 392-436.
STRULIK, H. (2008) Social composition, social conflict and economic development, Economic Journal 118, 1145-1170.
SUMNER, W. (1906) Folkways: A Study of the Sociological Importance of usages, manners, customs mores and morals, Boston: Ginn.
TAJFEL, H. (1970) Experiments in intergroup discrimination, Scientific American 223, 96-102.
TAJFEL, H. (1978) Differentiation Between Social Groups: Studies in the Social Psychology of Intergroup Relations, London: Academic Press.
TAJFEL, H., C. FLAMENT, M. BILLIG, and R. BUNDY (1971) Social categorization and intergroup behavior, European Journal of Social Psychology 1, 149-178.
TAJFEL, H., and J. TURNER (1979) An integrative theory of intergroup conflict, in The Social Psychology of Intergroup Relations, W.G.Austin and S. Worchel, eds., Monterey, CA: Brooks/Cole, pp. 33-48. Reprinted (2001) in Intergroup Relations, M. Hogg and D. Abrams, eds., Ann Arbor, MI, Psychology Press, pp. 94-109.
TAJFEL, H., and J. TURNER (1986) The social identity theory of intergroup behavior, in Psychology of Intergroup Relations, S. Worchel and W. Austin, eds., Chicago: Nelson-Hall, pp. 7-25.
VIGDOR, J. (2002) Interpreting ethnic fragmentation effects, Economics Letters 75, 271-276.