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Group status, minorities, and trust

Author

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  • Kei Tsutsui

    (School of Economics and CBESS, University of East Anglia)

  • Daniel John Zizzo

    (School of Economics and CBESS, University of East Anglia)

Abstract

We present the results of an experiment that attempts to measure the impact of majority and minority groups, and high status and low status groups, on well-being, cooperation and social capital. In the experiment, group membership is induced artificially, subjects interact with insiders and outsiders in trust games and periodically enter markets where they can trade group membership. We find that trust falls with groups because of discrimination against outsiders. Against this, however, there is evidence that low group status and minority subjects are less satisfied, and that low status subjects trust less other low status subjects.

Suggested Citation

  • Kei Tsutsui & Daniel John Zizzo, 2010. "Group status, minorities, and trust," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 10-10, School of Economics, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:wcbess:10-10
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    Cited by:

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    2. Bicchieri, Cristina & Dimant, Eugen & Gächter, Simon & Nosenzo, Daniele, 2022. "Social proximity and the erosion of norm compliance," Games and Economic Behavior, Elsevier, vol. 132(C), pages 59-72.
    3. Ravetti, Chiara & Sarr, Mare & Munene, Daniel & Swanson, Tim, 2019. "Discrimination and favouritism among South African workers: Ethnic identity and union membership," World Development, Elsevier, vol. 123(C), pages 1-1.
    4. Eger, Steffen, 2016. "Opinion dynamics and wisdom under out-group discrimination," Mathematical Social Sciences, Elsevier, vol. 80(C), pages 97-107.
    5. Gupta, Gautam & Mahmud, Minhaj & Maitra, Pushkar & Mitra, Santanu & Neelim, Ananta, 2018. "Religion, minority status, and trust: Evidence from a field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 146(C), pages 180-205.
    6. Fehrler, Sebastian & Kosfeld, Michael, 2013. "Can you trust the good guys? Trust within and between groups with different missions," Economics Letters, Elsevier, vol. 121(3), pages 400-404.
    7. Müller, Daniel, 2019. "The anatomy of distributional preferences with group identity," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 785-807.
    8. Johannes Abeler & Daniele Nosenzo, 2013. "Self-selection into Economics Experiments is Driven by Monetary Rewards," Discussion Papers 2013-03, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    9. Fabio Galeotti & Daniel Zizzo, 2014. "What happens if you single out? An experiment," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(3), pages 703-729, October.
    10. Daniel Zizzo, 2011. "You are not in my boat: common fate and discrimination against outgroup members," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(1), pages 91-103, March.
    11. Paetzel, Fabian & Sausgruber, Rupert, 2018. "Cognitive ability and in-group bias: An experimental study," Journal of Public Economics, Elsevier, vol. 167(C), pages 280-292.
    12. Rémi Suchon & Marie Claire Villeval, 2017. "Does upward mobility harm trust?," Post-Print halshs-01659021, HAL.
    13. Luo, Jun & Wang, Xinxin, 2020. "Hukou identity and trust—Evidence from a framed field experiment in China," China Economic Review, Elsevier, vol. 59(C).
    14. Fabio Galeotti & Daniel John Zizzo, 2012. "Trust and trustworthiness with singleton groups," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 12-03, School of Economics, University of East Anglia, Norwich, UK..
    15. Yang Yang, 2023. "Hukou Identity and Economic Behaviours: A Social Identity Perspective," Erudite Ph.D Dissertations, Erudite, number ph23-02 edited by Catherine Bros & Julie Lochard, February.
    16. Subhasish Dugar & Haimanti Bhattacharya, 2019. "Can Concerns for Social Status Mitigate the ‘Lemons Problem’? Experimental Evidence from the Indian Caste Hierarchy," Journal of South Asian Development, , vol. 14(2), pages 151-179, August.
    17. Roggemann, Hanne & Hadnes, Myriam & Landmann, Andreas, 2015. "Social identity and solidarity in ethnically diverse societies: Experimental evidence from Vietnam," 2015 Conference, August 9-14, 2015, Milan, Italy 212692, International Association of Agricultural Economists.
    18. Wang, Yizi, 2023. "Intergroup competition, group status, and individuals’ cooperation behavior: Evidence from a laboratory experiment," Finance Research Letters, Elsevier, vol. 56(C).
    19. Drichoutis, Andreas C. & Grimm, Veronika & Karakostas, Alexandros, 2020. "Bribing to Queue-Jump: An experiment on cultural differences in bribing attitudes among Greeks and Germans," MPRA Paper 102775, University Library of Munich, Germany.
    20. Haimanti Bhattacharya & Subhasish Dugar, 2014. "Partnership Formation: The Role of Social Status," Management Science, INFORMS, vol. 60(5), pages 1130-1147, May.
    21. Butler Jeffrey V., 2014. "Trust, Truth, Status and Identity: An Experimental Inquiry," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 14(1), pages 1-46, February.
    22. Gu, Jun & Mueller, Annika & Nielsen, Ingrid & Shachat, Jason & Smyth, Russell, 2015. "Reducing prejudice through actual and imagined contact: A field experiment with Malawian shopkeepers and Chinese immigrants," Working Papers on East Asian Studies 105/2015, University of Duisburg-Essen, Institute of East Asian Studies IN-EAST.
    23. Ece Yagman & Malcolm Keswell, 2015. "Accents, Race and Discrimination: Evidence from a Trust Game," SALDRU Working Papers 158, Southern Africa Labour and Development Research Unit, University of Cape Town.
    24. van den Akker, Olmo R. & van Assen, Marcel A.L.M. & van Vugt, Mark & Wicherts, Jelte M., 2020. "Sex differences in trust and trustworthiness: A meta-analysis of the trust game and the gift-exchange game," Journal of Economic Psychology, Elsevier, vol. 81(C).

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    More about this item

    Keywords

    groups; trust games; social capital; status effects; relative size effects;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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