A theory of strategic uncertainty and cultural diversity
We identify a new mechanism through which cultural diversity affects economic outcomes, based on a model of culture as shared cognition. Under this view, cultural diversity matters because it increases strategic uncertainty. The model can help better understand a variety of disparate evidence, inclu...
| Main Authors: | , |
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| Format: | Working paper |
| Language: | English |
| Published: |
University of Oxford ; Department of Economics
2020
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| _version_ | 1797096757792866304 |
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| author | Kets, W Sandroni, A |
| author_facet | Kets, W Sandroni, A |
| author_sort | Kets, W |
| collection | OXFORD |
| description | We identify a new mechanism through which cultural diversity affects economic outcomes, based on a model of culture as shared cognition. Under this view, cultural diversity matters because it increases strategic uncertainty. The model can help better understand a variety of disparate evidence, including why homogeneous societies can be more conformist, why diverse societies may get stuck in a low-trust trap, why companies with a strong culture may fail to adopt superior work practices, and why autocratic rulers in diverse societies may overinvest in state capacity. |
| first_indexed | 2024-03-07T04:46:06Z |
| format | Working paper |
| id | oxford-uuid:d355bc42-b3a8-4d3f-accc-20fe3c4572ab |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T04:46:06Z |
| publishDate | 2020 |
| publisher | University of Oxford ; Department of Economics |
| record_format | dspace |
| spelling | oxford-uuid:d355bc42-b3a8-4d3f-accc-20fe3c4572ab2022-03-27T08:10:30ZA theory of strategic uncertainty and cultural diversityWorking paperhttp://purl.org/coar/resource_type/c_1843uuid:d355bc42-b3a8-4d3f-accc-20fe3c4572abEnglishSymplectic ElementsUniversity of Oxford ; Department of Economics2020Kets, WSandroni, AWe identify a new mechanism through which cultural diversity affects economic outcomes, based on a model of culture as shared cognition. Under this view, cultural diversity matters because it increases strategic uncertainty. The model can help better understand a variety of disparate evidence, including why homogeneous societies can be more conformist, why diverse societies may get stuck in a low-trust trap, why companies with a strong culture may fail to adopt superior work practices, and why autocratic rulers in diverse societies may overinvest in state capacity. |
| spellingShingle | Kets, W Sandroni, A A theory of strategic uncertainty and cultural diversity |
| title | A theory of strategic uncertainty and cultural diversity |
| title_full | A theory of strategic uncertainty and cultural diversity |
| title_fullStr | A theory of strategic uncertainty and cultural diversity |
| title_full_unstemmed | A theory of strategic uncertainty and cultural diversity |
| title_short | A theory of strategic uncertainty and cultural diversity |
| title_sort | theory of strategic uncertainty and cultural diversity |
| work_keys_str_mv | AT ketsw atheoryofstrategicuncertaintyandculturaldiversity AT sandronia atheoryofstrategicuncertaintyandculturaldiversity AT ketsw theoryofstrategicuncertaintyandculturaldiversity AT sandronia theoryofstrategicuncertaintyandculturaldiversity |