Abstract
We develop a theory of moral behavior, individual and collective, based on a general model of identity in which people care about "who they are" and infer their own values from past choices. The model sheds light on many empirical puzzles inconsistent with earlier approaches. Identity investments respond nonmonotonically to acts or threats, and taboos onmere thoughts arise toprotect beliefs about the "priceless" value of certain social assets. High endowments trigger escalating commitment and a treadmill effect, while competing identities can cause dysfunctional capital destruction. Social interactions induce both social and antisocial norms of contribution, sustainedby respectively shunning free riders or do-gooders.
| Original language | English (US) |
|---|---|
| Article number | qjr002 |
| Pages (from-to) | 805-855 |
| Number of pages | 51 |
| Journal | Quarterly Journal of Economics |
| Volume | 126 |
| Issue number | 2 |
| DOIs | |
| State | Published - May 2011 |
Funding
∗An earlier version of this paper was titled “Identity, Dignity and Taboos: Beliefs as Assets.” We are grateful for helpful comments and suggestions on this project toAndrewCaplin, EdGlaeser, Yuemei Ji, Robert Oxoby, PhilippSadowski, and Glen Weyl, as well as to three referees and participants at several conferences and seminars. Bénabou gratefully acknowledges support from the National Science Foundation (SES-0424015) and the Canadian Institute for Advanced Research, and Tirole that of the European Research Council (Grant FP7/2007-2013-249429).
ASJC Scopus subject areas
- Economics and Econometrics