Template-Type: ReDIF-Paper 1.0
Author-Name: Hanming Fang	
Author-X-Name-First: Hanming	
Author-X-Name-Last: Fang
Author-Email: hanming.fang@yale.edu
Author-Workplace-Name: Department of Economics, Yale University	
Author-Name: Glenn C. Loury
Author-X-Name-First: Glenn C.
Author-X-Name-Last: Loury
Author-Email: gloury@bu.edu
Author-Workplace-Name: Institute for Economic Development, Boston University
Title:  Toward an Economic Theory of Dysfunctional Identity
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.
Length: 47 pages
Creation-Date: 2004-11
Revision-Date: 
Publication-Status: 
File-URL:http://www.bu.edu/econ/ied/dp/papers/dp146-.Loury.pdf
File-Format: Application/pdf
File-Function: 
Number: dp-146
Classification-JEL: Z1, Z13
Keywords: Identity: dysfunctional collective identity
Handle: RePEc:bos:iedwpr:dp-146