Communities and social inefficiency with heterogeneous groups

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2014
Volume: 48
Issue: C
Pages: 410-427

Authors (3)

Dalmazzo, Alberto (not in RePEc) Pin, Paolo (Università degli Studi di Sien...) Scalise, Diego (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We present a model where society is partitioned into groups, or communities, whose preferences may conflict. In particular, the actions of members of a certain group can inflict negative spillovers on members of other groups. We show that, on one hand, coordination at the group-level may be Pareto inefficient. However, on the other hand, by using a replicator equation approach where there is some moral pressure from co-members, we show that substantial compliance to group׳s norms arises endogenously. Our framework can also account for “cultural maladaptations”, i.e., the persistence of cultural traits which are harmful for community members, and for the society as a whole.

Technical Details

RePEc Handle
repec:eee:dyncon:v:48:y:2014:i:c:p:410-427
Journal Field
Macro
Author Count
3
Added to Database
2026-01-29