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Conformism, social pressure, and the dynamics of integration

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  • Olcina, Gonzalo
  • Panebianco, Fabrizio
  • Zenou, Yves

Abstract

We consider a model in which each individual belonging to an ethnic minority group is embedded in a network of relationships and decides whether she wants to be integrated in the society. Each individual wants her behavior to agree with her personal ideal preference for integration but also wants her behavior to be as close as possible to the average integration behavior of her peers. We show that there is always convergence to a steady-state and characterize it. We also show that different preferences for integration may emerge in steady state depending on the structure of the network. Then, we consider an optimal tax/subsidy policy which aim is to reach a certain level of integration in the population.

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  • Olcina, Gonzalo & Panebianco, Fabrizio & Zenou, Yves, 2024. "Conformism, social pressure, and the dynamics of integration," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 279-304.
    • Handle: RePEc:eee:jeborg:v:220:y:2024:i:c:p:279-304
    DOI: 10.1016/j.jebo.2024.02.021
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    More about this item

    Keywords

    Integration; Networks; Peer pressure; Policies;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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