Image preferences as a driver of polarization

with Kjell Arne Brekke

We show how the preference to be highly regarded by others as well as oneself can drive polarization. Changed normative views may affect individuals’ image, depending on their characteristics: for example, while single mothers or LGBTQ people may be viewed more favorably by liberals than conservatives, the reverse may hold for the wealthy or preachers. While normative views are fixed convictions in the short run, we assume that they are adopted from peers over time; adoption is more reluctant, however, for views decreasing one’s utility. Over time, migration between peer groups is feasible. In the steady state, everyone in a given peer group shares an extreme normative view, which one depending on group members’ characteristics. The only exception is groups where no-one’s image is affected by changed normative views: if such groups exist, their members may share intermediate positions. We show that if views are partly learnt across and not just within peer groups, equilibrium polarization is less extreme. If image can be improved through effort, the steady state involves minimal optimal efforts.