Document Type
Discussion Paper
Publication Date
10-1-2004
CFDP Number
1483
CFDP Pages
48
Abstract
We advance a novel choice-theoretic model of “identity” based on the notions of categories and narratives. Identity is conceived as a matter of “reflexive perception” — how people understand themselves. Choosing an identity is equivalent to making a generalization about one’s past that highlights the most salient aspects of experience. When many individuals make a common choice in this regard, they embrace a collective identity which is dysfunctional if it is Pareto dominated by an alternative self-classificatory schema. Using a simple multi-stage risk sharing game, we explore conditions under which dysfunctional collective identities might be expected to emerge.
Recommended Citation
Fang, Hanming and Loury, Glenn C., "Toward An Economic Theory of Dysfunctional Identity" (2004). Cowles Foundation Discussion Papers. 1765.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1765