A Theory of Self-Segregation as a Response to Relative Deprivation

Oded Stark and You Qiang Wang
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You Qiang Wang: The Chinese University of Hong Kong

No 168, Royal Economic Society Annual Conference 2002 from Royal Economic Society

Abstract: We model group formation as a response to relative deprivation. We employ a simple measure of relative deprivation. We show that the process of deprivation-induced self-selection into groups reaches a unique steady state. We study the social welfare implications of the deprivation-induced process of group formation and show that when individuals are left to pursue their betterment the resulting state tends to fall short of the best social outcome. We present several implications of the model including federalism and the demand for secession.

Date: 2002-08-29
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Related works:
Working Paper: Towards a Theory of Self- Segregation as a Response to Relative Deprivation: Steady-State Outcomes and Social Welfare (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ecj:ac2002:168

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