Work in Progress
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. 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
Socially Biased Evaluations of Signals for Success
Identity-Driven Choice Behavior and Confidence: 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)