For example, economics can explain in this way why consumers buy what they do.
For example, economics can explain in this way why consumers buy what they do. It also offers a perspective on why employees work for some employers and not others, why they work as hard as they do, and, indeed, why they go to work at all.
People may have a taste for oranges or bananas, or a preference for enjoying life today instead of saving for the future.
They then decide what to buy or how much to save, given prevailing prices, interest rates, and their own income. Economists have included in such analysis that people interact with others, but they have largely treated such social interactions in amechanical fashion, as if they were commodities.
Likewise, the standard economic analysis of racial discrimination is that whites do not want to associate with non-whites, and so demand a premium to buy from or work with non-whites. To continue reading, please log in or enter your email address.
To continue reading, please log in or register now.
After entering your email, you'll have access to two free articles every month. For unlimited access to Project Syndicate, subscribe now.Identity Economics May 17, George Akerlof, Rachel Kranton A great strength of economics is its ability to examine how decisions are made from the point of view of decision makers.
Identity and the Economics of Organizations George A. Akerlof and Rachel E. Kranton O n plebes rst day at West Point, called R-Day, they strip down to their underwear.
Their hair is cut off.
They are put in uniform. They then. Economics of Identity.
Paper Abstract: Paper Details: Individuals and businesses are moving rapidly to a digital and mobile way of doing business with each other. The more we interact and transact online, the more important online identity becomes.
Without it the growth of online commerce – and therefore the economy as a whole – will be. Identity Economicsbridges a critical gap in the social sciences.
It brings identity and norms to economics. It brings identity and norms to economics. People's notions of what is proper, and what is forbidden, and for whom, are fundamental to how hard they work, and how they learn, spend, and save.
Identity, she argued, was the missing element that would help to explain why people--facing the same economic circumstances--would make different choices. This was the beginning of a fourteen-year collaboration--and of Identity Economics.
Identity Economics. Identity Economics explains many persistent social patterns like gender-based segregation in the workforce or the high rates of dropout from school among African Americans. It does so using the tools of rational choice – game theory, based on utility maximizing individuals and their interactions -- but it looks to the social phenomenon of identity as an important source of individual utility.