Arbeitspapier | Working paper

Similarity and polarization in groups

to connected objects

"The focus of this paper is the endogenous formation of peer groups. We study a model in which agents choose their peers prior to making decisions on multiple issues. Agents differ in how much they value the decision outcomes on one issue relative to another. While each individual can collect information on at most one issue, all information is shared within the group. Thus, the group's preference composition affects the type of information that gets collected. We characterize stable groups, groups that are optimal for all their members. When information costs are low, stable groups must be sufficiently homogeneous. Furthermore, stability requires more similarity among extremists than among moderate individuals. When information costs are substantial, a free rider problem arises, and makes extreme peers more desirable, as they are more willing to invest in information acquisition. We show that, as information costs grow, polarization appears and becomes increasingly pronounced in stable groups." (author's abstract)

Similarity and polarization in groups

Urheber*in: Baccara, Mariagiovanna; Yariv, Leeat

Free access - no reuse

Extent: Seite(n): 55

Language: Englisch

Notes: Status: Veröffentlichungsversion

Bibliographic citation: Discussion Papers / Wissenschaftszentrum Berlin für Sozialforschung, Forschungsschwerpunkt Markt und Entscheidung, Abteilung Verhalten auf Märkten (2010-20)

Subject: Wirtschaft
Soziologie, Anthropologie
Wirtschaftssoziologie
Allgemeines, spezielle Theorien und Schulen, Methoden, Entwicklung und Geschichte der Wirtschaftswissenschaften
Entscheidung
Gruppe
Gruppendynamik
Informationsgewinnung
Gruppenbildung
Information
Peer Group
Entscheidungsfindung
Polarisierung
Verhalten

Event: Geistige Schöpfung

(who): Baccara, Mariagiovanna
Yariv, Leeat

Event: Veröffentlichung

(who): Wissenschaftszentrum Berlin für Sozialforschung gGmbH

(where): Deutschland, Berlin

(when): 2010

URN: urn:nbn:de:0168-ssoar-258000

Rights: GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln

Last update: 21.06.2024, 4:26 PM CEST

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Object type

Arbeitspapier

Associated

Baccara, Mariagiovanna
Yariv, Leeat
Wissenschaftszentrum Berlin für Sozialforschung gGmbH

Time of origin

2010

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