Group payoffs as public signals

Our first set of results shows that the display is sufficient to induce an in-group bias, which can neither be attributed to mere categorization of subjects into groups nor to a stronger sense of group identity as a result of the display. Moreover, we corroborate existing results, which find that, relative to the baseline, the display is welfare reducing in the Trust game. Our second set of results shows that when comparing the allocators' decisions across the two games, a first mover's trust is reciprocated by the second mover independently of group identity.