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Social identity and social free-riding

Mark Bernard, Florian Hett and Mario Mechtel

European Economic Review, 2016, vol. 90, issue C, 4-17

Abstract: We model individual identification choice as a strategic group formation problem. When choosing a social group to identify with, individuals appreciate high social status and a group stereotype to which they have a small social distance. A group׳s social status and stereotype are shaped by the (exogenous) individual attributes of its members and hence endogenous to individuals׳ choices. Unless disutility from social distance is strong enough, this creates a strategic tension as individuals with attributes that contribute little to group status would like to join high-status groups, thereby diluting the latters׳ status and changing stereotypes. Such social free-riding motivates the use of soft exclusion technologies in high-status groups, which provides a unifying rationale for phenomena such as hazing rituals, charitable activities or status symbols that is not taste-based or follows a standard signaling mechanism.

Keywords: Social identity; Social status; Social distance; Categorization; Group formation (search for similar items in EconPapers)
JEL-codes: C7 D1 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:90:y:2016:i:c:p:4-17

DOI: 10.1016/j.euroecorev.2016.01.001

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