This paper tests social identity theory with respect to individuals' self-identification behavior. We report results from a laboratory experiment in which subjects choose their group membership, which is interpreted as decision to identify with the respective group. Inducing a trade-off between...

Behavioral economics presents a "paternalistic" rationale for intervention by a benevolent government. This paper studies the desirability of various forms of collective action when government decisions are determined via the political process in response to votes by time inconsistent voters. We...

Cooperation is essential to long-term group effectiveness. It is difficult to achieve, however, when the group's and an individual's goals conflict. Under these circumstances, how does cooperation emerge? One means is through trust, which is an attitude critical to the formation of cooperation...