Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/48694
Authors: 
Wagener, Andreas
Kolmar, Martin
Year of Publication: 
2011
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2011: Die Ordnung der Weltwirtschaft: Lektionen aus der Krise - Session: Economic Analysis of Groups G5-V1
Abstract: 
We analyze the interplay of group identity and inter-group conflict in a contest where each of two conflicting groups can develop either a group or an individualistic identity. Contest structures impact on the adoption of identities which themselves influence behavior in the contest. We show the following: If group sizes and contest technologies are similar, group identities emerge. This then results in a reduced well-being for all individuals. If one group has a large advantage in the contest, only this group will create a group identity and benefit on the expense of the other. Outgroup hostility favors asymmetric identities. Several applications of the findings are discussed.
Subjects: 
Contests
Public Goods
Social Identity
JEL: 
D74
H41
D02
Document Type: 
Conference Paper

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