From Peer Pressure to Biased Norms : Formation and Collapse ∗

@inproceedings{Michaeli2014FromPP,
  title={From Peer Pressure to Biased Norms : Formation and Collapse ∗},
  author={Moti Michaeli and Daniel Spiro},
  year={2014}
}
This paper studies the emergence of social norms when individuals have heterogeneous private preferences and pressure each other while declaring a stance in public. It characterizes conditions under which a social norm can (and cannot) arise. Further, it shows that peer pressure may lead to a norm which is biased with respect to private preferences in society, yet is endogenously upheld by the population. Strikingly, a biased norm will often be more sustainable than a representative norm, which… CONTINUE READING

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