Endogenous mobility-reducing norms

R. Haagsma, N.B.J. Koning

Research output: Contribution to journalArticleAcademicpeer-review

10 Citations (Scopus)

Abstract

We present a model where a mobility-reducing norm arises in response to adverse economic conditions. Our example is the classical farm problem of low returns. A temporary transition barrier induces cognitive dissonance in farm youths, which they try to reduce by developing a belief that revalues their position. This involves an effort, because existing beliefs are resistant to change. The role of social support in effort cost reduction can be sufficient for the emergence and persistence of a norm which condemns leaving agriculture, thus causing crowding and lower earnings.
Original languageEnglish
Pages (from-to)523-547
Number of pages25
JournalJournal of Economic Behavior and Organization
Volume49
Issue number4
DOIs
Publication statusPublished - 2002

Keywords

  • cognitive-dissonance
  • social custom

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