Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73957
Authors: 
Watts, Alison
Year of Publication: 
2006
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 127.2006
Abstract: 
A model of group formation is presented where the number of groups is fixed and a person can only join a group if the group’s members approve the person’s joining. Agents have either local status preferences (each agent wants to be the highest status agent in his group) or global status preferences (each agent wants to join the highest status group that she can join). For both preference types, conditions are provided which guarantee the existence of a segregated stable partition where similar people are grouped together and conditions are provided which guarantee the existence of an integrated stable partition where dissimilar people are grouped together. Additionally, in a dynamic framework we show that if a new empty group is added to a segregated stable partition, then integration may occur.
Subjects: 
Group Formation
Stable Partition
Segregation
Integration
JEL: 
C7
D6
Document Type: 
Working Paper

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