Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/130402 
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper No. 5777
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
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 non-market 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.
Subjects: 
motivation
reflexivity
cooperation
identity
technological progress
bowling alone
JEL: 
A13
D30
D62
D71
I31
O10
Document Type: 
Working Paper
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