Identity Economy: Choices That Define Us
Our decisions—what to buy, which shoes to wear, which search engine or mobile device to use—tell ourselves and the world who we are, influencing and shaping our sense of identity. This idea, that people’s economic choices are influenced by self-identity, belonging, and social context, was formulated by Rachel Kranton and George Akerlof and published in their book *Identity Economics*.
When Nike chose Colin Kaepernick as a spokesperson, it connected the story of victory with the “Black Lives Matter” movement, targeting individuals who identify with its values. Similarly, Ecosia, the search engine that uses profits to plant trees, appeals to ecologically-minded users willing to forgo the habit and convenience of Google for a cause they believe in.
Even the choice between iPhone and Galaxy reflects different worldviews: one embodies a closed, secure, and comfortable ecosystem, while the other offers an open world of endless possibilities—albeit with added risk.
Consider your brand story: what larger ideas does it support? What does choosing your brand say about the identity of your target audience?
