Identity-driven Cooperation versus Competition

Dennis Snower and Steven Bosworth

No 11130, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper seeks to extend the domain of identity economics by exploring motivational foundations of in-group cooperation and out-group competition. On this basis, we explore the reflexive interaction between individual economic decisions and social identities in response to technological change in market economies. Our analysis explores how technological change falling on marketable goods and services, rather than nonmarket caring relationships, leads to a restructuring of identities, which increases the scope of individualism and promotes positional competition at the expense of caring activities. Since positional competition generates negative externalities while caring activities create positive ones, these developments have important welfare implications.

Keywords: Motivation; Reflexivity; Cooperation; Identity; Technological progress (search for similar items in EconPapers)
JEL-codes: A13 D03 D62 D71 I31 O10 (search for similar items in EconPapers)
Date: 2016-02
New Economics Papers: this item is included in nep-cdm and nep-ino
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Citations: View citations in EconPapers (22)

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