Why and How Identity Should Influence Utility

Wichardt, Philipp C. (January 2007): Why and How Identity Should Influence Utility. SFB/TR 15 Discussion Paper No. 193

Abstract

This paper provides an argument for the advantage of a preference for identity-consistent behaviour from an evolutionary point of view. Within a stylised model of social interaction, we show that the development of cooperative social norms is greatly facilitated if the agents of the society possess a preference for identity consistent behaviour. As cooperative norms have a positive impact on aggregate outcomes, we conclude that such preferences are evolutionarily advantageous. Furthermore, we discuss how such a preference can be integrated in the modelling of utility in order to account for the distinctive cooperative trait in human behaviour and show how this squares with the evidence.

• Item Type: Paper
• Keywords: cognitive dissonance, fairness, identity, reciprocity, social Norms, social preferences, utility
• Faculties: Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems; Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > A6 - Typenvielfalt, Loyalität und die Bildung von Handelsnetzwerken
• Subjects: 300 Social sciences > 330 Economics
• JEL Classification: A13, C70, C90, D01, Z13
• Language: English