Video Presentation – Janeway Institute Cambridge
Working Papers
Optimal Self-Screening and the Persistence of Identity-Driven Choices, Cambridge Working Papers in Economics 2274/ Janeway Institute Working Paper Series 2232
Individuals from different social groups make distinct educational and occupational choices, partly due to differential self-assessments of ability shaped by social context. This paper develops a theoretical framework to explain both the function and persistence of this phenomenon combining two well-established insights: self-evaluations are inherently noisy, and they are shaped by social comparison. Using a novel solution concept, I show how agents use publicly available data about group presentation as a self-screening tool to manage noisy confidence and improve decision-making on average. However, disparities in group representation create heterogeneity in how agents can utilize this tool. These disparities can result in persistent asymmetries in choice behavior across individuals with identical abilities, but different social types. The self-screening behavior drives agents towards extreme perceptions of asymmetries in social context, providing a unified explanation for the appeal of a number of well-documented behavioral biases. Finally, I explore how social context can be designed to nudge agents toward desired behavior.
Multidimensional Social Identities and Choice Behavior: The Pitfalls and Opportunities Cambridge Working Papers in Economics 2379 / Janeway Institute Working Paper Series 2321
Diversity is a widely pursued objective, yet current approaches often fall short or even backfire. This paper argues that treating the underrepresentation of groups such as women and ethnic minorities as separate issues oversimplifies the problem. I formally analyze how multidimensional social identities and social context interact to shape confidence and participation decisions. I show how “optimal social identification” allows agents to flexibly interpret social data to improve decision-making outcomes. However, different options to use this tool can create persistent disparities in task participation and outcomes. The framework enables a general equilibrium analysis of the interaction between social context, social identification, and task allocation. I show how one-dimensional policies, such as those focused solely on gender, neglect externalities and within-trait differences, and can have negative welfare effects. Instead, I advocate for multidimensional quotas with informational policies that nudge individuals to consider alternative traits and statistics. These interventions balance individual benefits with aggregate welfare concerns, reducing disparities while empowering individuals to reach their full potential.
Work In progress
Imitation and Adaptation: How Social Context Shapes Learning Trajectories (with Rebecca Heath), Awarded Keynes Fund Standard Grant
Coarse Interpretation and Self-Censorship: An Organizational View (with Alex Chan), Awarded Keynes Fund Standard Grant
An Equilibrium Model of Culture (with Antonio Penta)
Bounded Rationality as Correlated Reward Updates in Reinforcement Learning (with Marta Grzeskiewicz)
Publications
De nieuwe DNB conjunctuur indicator voorspelt afvlakking groei in 2019 (The New Dutch Central Bank Business Cycle Indicator Predicts decrease in Economic Growth for 2019) with Bas Butler and Maikel Volkerink, Economisch Statistisch Bulletin, Feb 28 (2019)
