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- W3080493631 abstract "We investigate a group choice problem of agents pursuing social status. We assume heterogeneous agents want to signal their private information (ability, income, patience, altruism, etc.) to others, facing tradeoff between status (desire to be perceived in prestigious group from outside observers) and status (desire to be perceived talented from peers inside their group). To analyze the tradeoff, we develop two stage signaling model in which each agent firstly chooses her group and secondly chooses her action in the group she chose. They face binary choice problems both in group and action choices. Using cutoff strategy, we construct an partially separating equilibrium such that there are four populations: (i) choosing high group with strong incentive for action in the group, (ii) high group with weak incentive, (iii) low group with strong incentive, and (iv) low group with weak incentive. By comparative statics results, we find some spillover effects from a certain group to another, on how four populations change, when a policy is taken in each group. These results have rich implications for group choice problems like school, firm or residential preference." @default.
- W3080493631 created "2020-09-01" @default.
- W3080493631 creator A5038761401 @default.
- W3080493631 date "2020-08-24" @default.
- W3080493631 modified "2023-09-27" @default.
- W3080493631 title "Implications of the Tradeoff between Inside and Outside Social Status in Group Choice" @default.
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