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Dual social identities, cross-cultural differences, and cooperation: Evidence from the One Country, Two Systems paradigm

Author

Listed:
  • Sun, Shutao
  • Wang, Chunchao
  • Yang, Fanzheng
  • Yu, Li

Abstract

This study examines how dual social identities and cross-cultural differences influence cooperation within the unique context of China's “One Country, Two Systems” paradigm. Employing public good games involving participants from mainland China and the Hong Kong Special Administrative Region (HK) and the Macao Special Administrative Region (MC), we investigate cooperative behavior when partners' shared identities (a common affiliation or a specific origin-linked identity) are revealed. Our findings demonstrate that HK-MC participants, influenced by a culture of universalism, exhibit consistent cooperation levels regardless of partner origin. Meanwhile, mainland Chinese participants, shaped by a particularistic culture, display ingroup favoritism. These results shed light on the complex interplay between dual social identities, cultural background, and cooperation, offering valuable insights for managing diverse teams within organizations.

Suggested Citation

  • Sun, Shutao & Wang, Chunchao & Yang, Fanzheng & Yu, Li, 2025. "Dual social identities, cross-cultural differences, and cooperation: Evidence from the One Country, Two Systems paradigm," China Economic Review, Elsevier, vol. 93(C).
  • Handle: RePEc:eee:chieco:v:93:y:2025:i:c:s1043951x25001518
    DOI: 10.1016/j.chieco.2025.102493
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    Keywords

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    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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