Job Market Paper
This paper provides a novel explanation for identity-driven choice behavior, that does not rely on built-in differences in preferences, discrimination or social pressures, but works through the optimal management of confidence. Agents observe social identity cues that stem from the prevalence of their subgroup among the successful individuals in the social context, and find it rational to let their choices be driven by these social identity cues, even when these cues do not directly affect utility. The influence on choice differs across types, but is not driven by ability differences between subgroups. I show the existence of a stable population equilibrium in which the task allocation and the use of social identity cues differ between a priori identical subgroups.
Keywords: Social Identity, Decision Making, Uncertainty, Diversity
Work In progress
Socially Biased Signals for Success
The Social Context, Confidence and Subjective Beliefs: An Experiment
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)