Conceptualizing Identity in Economics: A Naive Introduction to Consciousness

Abstract

In the field of economic analysis, the focus on utility maximization and policy interventions within the framework of traditional methodology has faced challenges arising from the oversimplification of human behaviour. This chapter critically examines the conceptual foundations of identity within the interdisciplinary landscape, delving into the evolving discourse surrounding identity economics. Departing from standard economic assumptions, we highlight the limitations of utility-based models and the growing importance of identity in economic research. Drawing from sociology, social psychology, and the philosophy of economics, our exploration emphasizes the multifaceted nature of identity. While sociology provides a layered understanding, social psychology tends to frame social identities in binary terms, creating a divergence that is notably evident in the methodology of identity economics rooted in behavioural economics. Our analysis extends beyond conventional boundaries, introducing the relatively uncharted concept of consciousness within economic discourse. Recognizing the historical ties with sociology, we navigate the influence of the robust scientific methodology of social psychology in practical applications. By incorporating consciousness into the discussion, we open avenues for further inquiry into the intersection of consciousness and identity in shaping economic modelling. The exploration culminates in a nuanced understanding of identity dynamics, challenging the conventional boundaries of economics. We advocate for a shift towards approaches aligning with dynamic identity visions, emphasizing the reciprocal conditioning between private and social selves. As we stand at an evolving landscape, this chapter serves as a humble introduction, urging a nuanced understanding of identity in economics and pointing towards the integration of consciousness as a promising avenue for future exploration and discourse in the philosophy of economics.