Social Capital and the Status Externality
Jun-ichi Itaya () and
No 318, Discussion paper series. A from Graduate School of Economics and Business Administration, Hokkaido University
This paper investigates how the presence of social capital affects the externality arising from status-seeking preference as a parable for inefficient antagonistic behavior. It is assumed that the stock of social capital is accumulating through joint social interaction between rational individuals who are forward looking. Using a differential game, we show that although the presence of social capital mitigates the tendency of overconsumption over time, social capital ends up declining to zero. It is also shown that the benefits from social capital enhance the motivation of individuals to accumulate social capital thereby leading to deter overaccumulation and thus possibly improving social welfare.
Keywords: social capital; status externality; Markov perfect equilibrium; differential game (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Social Capital and the Status Externality (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hok:dpaper:318
Access Statistics for this paper
More papers in Discussion paper series. A from Graduate School of Economics and Business Administration, Hokkaido University Contact information at EDIRC.
Bibliographic data for series maintained by Hokkaido University Library ().