Discussion paper

DP11130 Identity-driven Cooperation versus Competition

This paper seeks to extend the domain of identity economics by exploring
motivational foundations of in-group cooperation and out-group
competition. On this basis, we explore the reflexive interaction between
individual economic decisions and social identities in response to technological
change in market economies. Our analysis explores how technological
change falling on marketable goods and services, rather than nonmarket
caring relationships, leads to a restructuring of identities, which
increases the scope of individualism and promotes positional competition
at the expense of caring activities. Since positional competition generates
negative externalities while caring activities create positive ones, these
developments have important welfare implications.


Bosworth, S and D Snower (2016), ‘DP11130 Identity-driven Cooperation versus Competition‘, CEPR Discussion Paper No. 11130. CEPR Press, Paris & London. https://cepr.org/publications/dp11130