Endogenous Identity in a Social Network

Christian Ghiglino and Nicole Tabasso

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Abstract: We study the interaction between endogenous identity choice and peer influence in social networks. Individuals choose identities that determine behavioral norms and reference groups within a fixed network. Equilibrium peer behavior, in turn, shapes identity choice. Interventions affect behavior both within identities through conformism pressure and through identity choices. Changes that raise actions holding identities fixed can induce identity changes that lower them. Our framework explains why peer effects estimated under one composition may fail to predict the effects of reassignment. It also shows how network structure can sustain heterogeneous behavior among individuals with identical abilities.

Date: 2024-06, Revised 2026-10
New Economics Papers: this item is included in nep-gth, nep-hme, nep-mic, nep-net, nep-soc and nep-ure
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