The Potential of Social Identity for Equilibrium Selection By

@inproceedings{Chen2010ThePO,
  title={The Potential of Social Identity for Equilibrium Selection By},
  author={Roy Chen and Yan Chen},
  year={2010}
}
When does a common group identity improve efficiency in coordination games? To answer this question, we propose a group-contingent social preference model and derive conditions under which social identity changes equilibrium selection. We test our predictions in the minimum-effort game in the laboratory under parameter configurations which lead to an inefficient low-effort equilibrium for subjects with no group identity. For those with a salient group identity, consistent with our theory, we… CONTINUE READING