I thought the archetypal example was where everyone had a mild preference to be with other members of their race (even if just because of somewhat more shared culture) and didn’t personally really care if they weren’t in a mixed group. But I take your point to be that, at least in the gender case, we do have the preference not to be entirely divided by gender.
So yes, I agree that if the effect leads to too much sorting then it could be bad but it seems like a tough empirical question whether we are at a point where the utility gains from more sorting are more or less than the losses.
I thought the archetypal example was where everyone had a mild preference to be with other members of their race (even if just because of somewhat more shared culture) and didn’t personally really care if they weren’t in a mixed group. But I take your point to be that, at least in the gender case, we do have the preference not to be entirely divided by gender.
So yes, I agree that if the effect leads to too much sorting then it could be bad but it seems like a tough empirical question whether we are at a point where the utility gains from more sorting are more or less than the losses.