From Peer Pressure to Biased Norms

Moti Michaeli, Daniel Spiro

American Economic Journal Microeconomics · 2017 · 46 citations · 22 references

Concepts

TL;DR

This paper studies a coordination game among heterogeneous players who experience peer pressure when deviating from each other. It characterizes the conditions under which a social norm emerges in equilibrium and the patterns of norm compliance. The emergent norm may be biased relative to the average taste yet endogenously upheld, and under some circumstances a biased norm can be more sustainable than a non‑biased one, potentially explaining the bias of various social and religious norms. JEL codes: D11, Z12, Z13.

Abstract

This paper studies a coordination game between a continuum of players with heterogeneous tastes who perceive peer pressure when behaving differently from each other. It characterizes the conditions under which a social norm—a mode of behavior followed by many—exists in equilibrium and the patterns of norm compliance. The emergent norm may be biased compared to the average taste in society, yet endogenously upheld by the population. Strikingly, a biased norm will, under some circumstances, be more sustainable than a non-biased norm, which may explain the bias of various social and religious norms. (JEL D11, Z12, Z13)

References

22