A Theory of Strategic Uncertainty and Cultural Diversity

S-Tier
Journal: Review of Economic Studies
Year: 2021
Volume: 88
Issue: 1
Pages: 287-333

Authors (2)

Willemien Kets (Oxford University) Alvaro Sandroni (not in RePEc)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

We identify a new mechanism through which cultural diversity affects economic outcomes, based on a model of culture as shared cognition. Under this view, cultural diversity matters because it increases strategic uncertainty. The model can help better understand a variety of disparate evidence, including why homogeneous societies can be more conformist, why diverse societies may get stuck in a low-trust trap, why companies with a strong culture may fail to adopt superior work practices, and why autocratic rulers in diverse societies may overinvest in state capacity.

Technical Details

RePEc Handle
repec:oup:restud:v:88:y:2021:i:1:p:287-333.
Journal Field
General
Author Count
2
Added to Database
2026-01-25