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On the effects of group identity in strategic environments

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  • Le Coq, Chloé
  • Tremewan, James
  • Wagner, Alexander K.

Abstract

We examine differences in behavior between subjects interacting with a member of either the same or different identity group in both a centipede game and a series of stag hunt games. We find evidence that subjects interacting with outgroup members are more likely to behave as though best-responding to uniform randomization of the partner. We conclude that group identity not only affects player׳s social preferences, as identified in earlier research, but also affects the decision making process, independent of changes in the utility function.

Suggested Citation

  • Le Coq, Chloé & Tremewan, James & Wagner, Alexander K., 2015. "On the effects of group identity in strategic environments," European Economic Review, Elsevier, vol. 76(C), pages 239-252.
    • Handle: RePEc:eee:eecrev:v:76:y:2015:i:c:p:239-252
    DOI: 10.1016/j.euroecorev.2015.03.001
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    2. Klaus Abbink & Donna Harris, 2019. "In-group favouritism and out-group discrimination in naturally occurring groups," PLOS ONE, Public Library of Science, vol. 14(9), pages 1-13, September.
    3. Kets, Willemien & Sandroni, Alvaro, 2019. "A belief-based theory of homophily," Games and Economic Behavior, Elsevier, vol. 115(C), pages 410-435.
    4. Marie Claire Villeval, 2021. "Group Identity and Social Preferences by Yan Chen and Sherry X. Li," Post-Print halshs-03504258, HAL.
    5. Kets, Willemien & Sandroni, Alvaro, 2015. "Challenging Conformity: A Case for Diversity," MPRA Paper 68166, University Library of Munich, Germany.
    6. Willemien Kets & Alvaro Sandroni, 2021. "A Theory of Strategic Uncertainty and Cultural Diversity," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(1), pages 287-333.
    7. Van Parys, Jessica & Ash, Elliott, 2018. "Sequential decision-making with group identity," Journal of Economic Psychology, Elsevier, vol. 69(C), pages 1-18.
    8. Karl Schlag & James Tremewan, 2021. "Simple belief elicitation: An experimental evaluation," Journal of Risk and Uncertainty, Springer, vol. 62(2), pages 137-155, April.
    9. Cacault, Maria Paula & Grieder, Manuel, 2019. "How group identification distorts beliefs," Journal of Economic Behavior & Organization, Elsevier, vol. 164(C), pages 63-76.
    10. Anita Gantner & Regine Oexl, 2023. "Respecting entitlements in legislative bargaining: A matter of preference or necessity?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(2), pages 490-519, May.
    11. Jean-Robert Tyran & Alexander K. Wagner, 2016. "Experimental Evidence on Expressive Voting," Discussion Papers 16-12, University of Copenhagen. Department of Economics.
    12. Marie Claire Villeval, 2021. "Group Identity and Social Preferences (chapter X)," Post-Print halshs-03504316, HAL.
    13. Grimm, Veronika & Utikal, Verena & Valmasoni, Lorenzo, 2017. "In-group favoritism and discrimination among multiple out-groups," Journal of Economic Behavior & Organization, Elsevier, vol. 143(C), pages 254-271.

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    More about this item

    Keywords

    Group identity; Centipede game; Stag hunt game; Experiment;
    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
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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