IDEAS home Printed from https://ideas.repec.org/a/aea/aecrev/v112y2022i9p3063-3105.html
   My bibliography  Save this article

Dispersed Behavior and Perceptions in Assortative Societies

Author

Listed:
  • Mira Frick
  • Ryota Iijima
  • Yuhta Ishii

Abstract

We formulate a model of social interactions and misinferences by agents who neglect assortativity in their society, mistakenly believing that they interact with a representative sample of the population. A key component of our approach is the interplay between this bias and agents' strategic incentives. We highlight a mechanism through which assortativity neglect, combined with strategic complementarities in agents' behavior, drives up action dispersion in society (e.g., socioeconomic disparities in education investment). We also suggest that the combination of assortativity neglect and strategic incentives may be relevant in understanding empirically documented misperceptions of income inequality and political attitude polarization.

Suggested Citation

  • Mira Frick & Ryota Iijima & Yuhta Ishii, 2022. "Dispersed Behavior and Perceptions in Assortative Societies," American Economic Review, American Economic Association, vol. 112(9), pages 3063-3105, September.
    • Handle: RePEc:aea:aecrev:v:112:y:2022:i:9:p:3063-3105
    DOI: 10.1257/aer.20190486
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/aer.20190486
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/aer.20190486.appx
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/aer.20190486.ds
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    File URL: https://libkey.io/10.1257/aer.20190486?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Suzane Bellue, 2023. "Why Don’t Poor Families Move? A Spatial Equilibirum Analysis of Parental Decisions with Social Learning," CRC TR 224 Discussion Paper Series crctr224_2023_472, University of Bonn and University of Mannheim, Germany.
    2. Krishna Dasaratha & Benjamin Golub & Anant Shah, 2023. "Equity Pay In Networked Teams," Papers 2308.14717, arXiv.org.
    3. Ambrocio, Gene & Hasan, Iftekhar, 2022. "Belief polarization and Covid-19," Bank of Finland Research Discussion Papers 10/2022, Bank of Finland.
    4. Battigalli, Pierpaolo & Panebianco, Fabrizio & Pin, Paolo, 2023. "Learning and selfconfirming equilibria in network games," Journal of Economic Theory, Elsevier, vol. 212(C).
    5. Junnan He & Lin Hu & Matthew Kovach & Anqi Li, 2023. "Learning Source Biases: Multisource Misspecifications and Their Impact on Predictions," Papers 2309.08740, arXiv.org, revised Sep 2024.
    6. Simon Gleyze & Philippe Jehiel, 2023. "Expectation Formation, Local Sampling and Belief Traps: A new Perspective on Education Choices," Working Papers halshs-04154324, HAL.

    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:112:y:2022:i:9:p:3063-3105. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.