Identity-Driven Cooperation Versus Competition

7 Pages Posted: 23 Mar 2016

See all articles by Dennis J. Snower

Dennis J. Snower

University of Kiel - Institute for World Economics (IfW); Institute for the Study of Labor (IZA); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Steven Bosworth

Kiel Institute for the World Economy

Multiple version iconThere are 3 versions of this paper

Date Written: February 29, 2016

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.

Keywords: motivation, reflexivity, cooperation, identity, technological progress, bowling alone

JEL Classification: A130, D300, D620, D710, I310, O100

Suggested Citation

Snower, Dennis J. and Bosworth, Steven, Identity-Driven Cooperation Versus Competition (February 29, 2016). CESifo Working Paper Series No. 5777, Available at SSRN: https://ssrn.com/abstract=2753488 or http://dx.doi.org/10.2139/ssrn.2753488

Dennis J. Snower (Contact Author)

University of Kiel - Institute for World Economics (IfW) ( email )

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Institute for the Study of Labor (IZA)

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Centre for Economic Policy Research (CEPR)

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Steven Bosworth

Kiel Institute for the World Economy ( email )

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Germany

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