Economists explain individual behavior by market prices, total income, and preferences through a utility evaluation of alternative actions. A new research agenda adds an identity variable that depends on the individual’s actions, its assigned social categories, and the actions of others. Social norms related to expected behavior in social groups can influence individual behavior and choices. If monetary factors are constant, any choices in conflict with identity are avoided.
|Title of host publication||21st Century Economics|
|Subtitle of host publication||Economic Ideas you should read and remember|
|Publication status||Published - 2019|
Zimmermann, K. (2019). Klaus F. Zimmermann Recommends "Identity Economics: How Our Identities Shape Our Work, Wages, and Well-Being" by George A. Akerlof and Rachel E. Kranton. In 21st Century Economics: Economic Ideas you should read and remember (pp. 161-162). Springer, Cham. https://doi.org/10.1007/978-3-030-17740-9_61