Document Type

Discussion Paper

Publication Date


CFDP Number


CFDP Revision Date

March 1, 2019

CFDP Pages


Journal of Economic Literature (JEL) Code(s)

C70, D83, D90


We take an equilibrium-based approach to study the interplay between behavior and misperceptions in coordination games with assortative interactions. Our focus is assortativity neglect, where agents fail to take into account the extent of assortativity in society. We show, first, that assortativity neglect amplifies action dispersion, both in fixed societies and by exacerbating the effect of social changes. Second, unlike other misperceptions, assortativity neglect is a misperception that agents can rationalize in any true environment. Finally, assortativity neglect provides a lens through which to understand how empirically documented misperceptions about distributions of population characteristics (e.g., income inequality) vary across societies.


Supplement Materials, 22 pp

d2128-rs.pdf (658 kB)
Supplemental material

Included in

Economics Commons