Article ID Journal Published Year Pages File Type
885461 Journal of Economic Psychology 2007 14 Pages PDF
Abstract

This paper studies how group identity, social distance and intergroup bias may affect economic decision-making. Two types of experimental groupings are created, and subjects are then paired with either an in-group member or an out-group member in a number of two-person games. The result of this experiment shows that out-group members face a risk of being discriminated against. The cause of the discrimination is not hostility toward out-group members; the discrimination is triggered because of higher expectations or favoritism of in-group members. This type of behavior holds, regardless of the grouping procedure.

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