FEEM working papers "Note di lavoro" series
2006 .127

Formation of Segregated and Integrated Groups


Authors: Alison Watts
Series: Climate Change and Sustainable Development
Editor: Carlo Carraro
Type: Journal
Keywords: Group Formation,Stable Partition,Segregation,Integration
JEL n.: C7,D6
JEL: International Journal of Game Theory
Pages: Vol. 35, No. 4
Date: 04/2007

Abstract

A model of group formation is presented where the number of groups is fixed and a person can only join a group if the group's members approve the person's joining. Agents have either local status preferences (each agent wants to be the highest status agent in his group) or global status preferences (each agent wants to join the highest status group that she can join). For both preference types, conditions are provided which guarantee the existence of a segregated stable partition where similar people are grouped together and conditions are provided which guarantee the existence of an integrated stable partition where dissimilar people are grouped together. Additionally, in a dynamic framework we show that if a new empty group is added to a segregated stable partition, then integration may occur.

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