Choy, James (2016) Constructing social division to support cooperation. Working Paper. Coventry: University of Warwick. Department of Economics. Warwick economics research papers series (WERPS) (1113).

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Abstract

Many societies are divided into multiple smaller groups. Certain kinds of interaction are more likely to take place within a group than across groups. I model a reputation effect that enforces these divisions. Agents who interact with members of different groups can support lower levels of cooperation with members of their own groups. A hierarchical relationship between groups appears endogenously in equilibrium. Group divisions appear without any external cause, and improvements in formal contracting institutions may cause group divisions to disappear. Qualitative evidence from the anthropological literature is consistent with several predictions of the model.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HM Sociology
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Reputation -- Mathematical models, Social stratification
Series Name:	Warwick economics research papers series (WERPS)
Publisher:	University of Warwick. Department of Economics
Place of Publication:	Coventry
ISSN:	0083-7350
Official Date:	February 2016
Dates:	Date Event February 2016 Published
Number:	1113
Number of Pages:	33
Institution:	University of Warwick
Status:	Not Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Open Access (Creative Commons)
Funder:	Yale University. Economic Growth Center
Version or Related Resource:	This paper also appears as CAGE Working Paper No: 266

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