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Some Experimental Evidence On The Evolution Of Discrimination, Co--Operation And Perceptions Of Fairness

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  • Shaun Hargreaves-Heap

    (University of East Anglia)

  • Yanis Varoufakis

    (University of Sydney and University of Athens)

Abstract

When two people agree to trade, they unlock a mutual benefit, resolve a potential conflict and gain in proportion to their relative "aggression", eg the Hawk--Dove game. In an experiment with this game, a discriminatory convention evolved when half of the players were randomly assigned a red and the other half a blue label. Later, the same players were also offered the option of co--operating. Those disadvantaged by the colour--based discriminatory convention co--operated with one another most of the time while the rest did not. The paper offers an explanation of these observations based on a modification of Rabin (1993). The weaker are always anxious for justice and equality. The strong pay heed to neither. (Aristotle, "Politics", s1318b) Copyright 2002 Royal Economic Society

Suggested Citation

  • Shaun Hargreaves-Heap & Yanis Varoufakis, 2002. "Some Experimental Evidence On The Evolution Of Discrimination, Co--Operation And Perceptions Of Fairness," Economic Journal, Royal Economic Society, vol. 112(481), pages 679-703, July.
  • Handle: RePEc:ecj:econjl:v:112:y:2002:i:481:p:679-703
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    References listed on IDEAS

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    Cited by:

    1. Skott, Peter, 2005. "Fairness as a source of hysteresis in employment and relative wages," Journal of Economic Behavior & Organization, Elsevier, vol. 57(3), pages 305-331, July.
    2. Cartwright, Edward & Wooders, Myrna, 2004. "Correlated equilibrium and behavioral conformity," Economic Research Papers 269625, University of Warwick - Department of Economics.
    3. Gangopadhyay Partha, 2008. "Irrationality, Non-equilibrium Conflict and Complex Dynamics," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 13(2), pages 1-15, January.
    4. 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.
    5. 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.
    6. Tan, Jonathan H.W. & Zizzo, Daniel John, 2008. "Groups, cooperation and conflict in games," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(1), pages 1-17, February.
    7. Swee-Hoon Chuah & Robert Hoffmann & Jeremy Larner, 2011. "Escalation Bargaining: Theoretical Analysis and Experimental Test," Discussion Papers 2011-05, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    8. Hugh-Jones, David & Perroni, Carlo, 2017. "The logic of costly punishment reversed: Expropriation of free-riders and outsiders," Journal of Economic Behavior & Organization, Elsevier, vol. 135(C), pages 112-130.
    9. 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.
    10. Grimalday, Gianluca & Karz, Anirban & Proto, Eugenio, 2012. "Everyone Wants a Chance: Initial Positions and Fairness in Ultimatum Games," CAGE Online Working Paper Series 93, Competitive Advantage in the Global Economy (CAGE).
    11. David Hugh-Jones & Ro’i Zultan, 2013. "Reputation and Cooperation in Defense," Journal of Conflict Resolution, Peace Science Society (International), vol. 57(2), pages 327-355, April.
    12. Andreozzi, Luciano, 2010. "An evolutionary theory of social justice: Choosing the right game," European Journal of Political Economy, Elsevier, vol. 26(3), pages 320-329, September.
    13. Charness, Gary & Kuhn, Peter, 2011. "Lab Labor: What Can Labor Economists Learn from the Lab?," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 3, pages 229-330, Elsevier.
    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. Kei Tsutsui & Daniel Zizzo, 2014. "Group status, minorities and trust," Experimental Economics, Springer;Economic Science Association, vol. 17(2), pages 215-244, June.
    16. Federica Alberti & Shaun Hargreaves Heap & Robert Sugden, 2011. "The emergence of salience: An experimental investigation," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 11-01, School of Economics, University of East Anglia, Norwich, UK..
    17. Filippin, Antonio, 2003. "Discrimination and Workers' Expectations: Experimental Evidence," IZA Discussion Papers 824, Institute of Labor Economics (IZA).
    18. Shaun Hargreaves Heap, 2008. "Social capital and snake oil," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 21(2), pages 199-207, September.
    19. Shaun Hargreaves Heap, 2011. "The magic of the market," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(1), pages 105-115, March.
    20. Gianluca Grimalda & Anirban Kar & Eugenio Proto, 2016. "Procedural fairness in lotteries assigning initial roles in a dynamic setting," Experimental Economics, Springer;Economic Science Association, vol. 19(4), pages 819-841, December.
    21. Gerhard Riener & Alexander Schacht, 2011. "Group Identity and Discrimination in Small Markets: Asymmetry of In-Group Favors," Jena Economic Research Papers 2011-043, Friedrich-Schiller-University Jena.
    22. Antonio Filippin, 2003. "Discrimination and workers' expectations: experimental evidence," Departmental Working Papers 2003-16, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    23. Edward Cartwright & Myrna Wooders, 2003. "Social Conformity and Bounded Rationality in Arbitrary Games with Incomplete Information: Some First Results," Working Papers 2003.119, Fondazione Eni Enrico Mattei.

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