The Structure and Behavioral Effects of Revealed Social Identity Preferences

60 Pages Posted: 13 Sep 2016 Last revised: 18 Sep 2019

See all articles by Florian Hett

Florian Hett

Johannes Gutenberg University Mainz - Faculty of Law and Economics

Markus Kröll

Goethe University Frankfurt - Department of Management and Applied Microeconomics

Mario Mechtel

Leuphana University of Lueneburg

Date Written: September 18, 2019

Abstract

A large body of evidence shows that social identity affects behavior. However, our understanding of the substantial variation of these behavioral effects is still limited. We use a novel laboratory experiment to measure differences in preferences for social identities as a potential source of behavioral heterogeneity. Facing a trade-off between monetary payments and belonging to different groups, individuals are willing to forego significant earnings to avoid belonging to certain groups. We then show that individual differences in these foregone earnings correspond to the differences in discriminatory behavior towards these groups. Our results illustrate the importance of considering individual heterogeneity to fully understand the behavioral effects of social identity.

Keywords: Social Identity, Identification Preferences, Social Preferences, Outgroup Discrimination, Behavioral Heterogeneity, Social Status, Social Distance

JEL Classification: C91, C92, D90

Suggested Citation

Hett, Florian and Kröll, Markus and Mechtel, Mario, The Structure and Behavioral Effects of Revealed Social Identity Preferences (September 18, 2019). Available at SSRN: https://ssrn.com/abstract=2837519 or http://dx.doi.org/10.2139/ssrn.2837519

Florian Hett (Contact Author)

Johannes Gutenberg University Mainz - Faculty of Law and Economics ( email )

Chair of Corporate Finance
D-55099 Mainz, 55128
Germany

Markus Kröll

Goethe University Frankfurt - Department of Management and Applied Microeconomics ( email )

Germany
+496979834827 (Phone)

Mario Mechtel

Leuphana University of Lueneburg ( email )

Scharnhorststraße 1
Wilschenbrucher Weg 69
Lüneburg, 21335
Germany
+4941316772636 (Phone)

HOME PAGE: http://www.mario-mechtel.de

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