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Economic Theory
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Economic Theory
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Social Norms, Cooperation and Inequality

Social norms, cooperation and inequality
Authors: Bó, Pedro Dal;

Social Norms, Cooperation and Inequality

Abstract

Social norms can influence behavior by establishing reward and punishment schemes that operate through community enforcement and in this way support outcomes that cannot be supported by personal enforcement alone. This paper analyzes the outcomes that can be supported through social norms in a society. I consider a society of infinitely long-lived and very patient agents that are randomly matched in pairs every period to play a given game and, unlike previous work that considers a society divided in two groups, I only restrict this matching procedure to be independent of history and time. I find that any mutually beneficial outcome can be supported by a self-enforcing social norm under both perfect information and a simple local information system. These Folk Theorem results explain not only how social norms can provide incentives to forestall opportunistic behavior and support cooperation in a community but also how they can support outcomes characterized by inequality. For example, self-enforcing social norms can support outcomes such as a "kingdom" (a society in which one member reaches the highest possible payoff) or a caste system (in which some groups of the population obtain higher payoffs than others).

Related Organizations
Keywords

folk theorem, Models of societies, social and urban evolution, Multistage and repeated games, discrimination

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    popularity
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    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
4
Average
Average
Average
bronze