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Group-identity and long-run cooperation: an experiment

Author

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  • Gabriele Camera

    (Economic Science Institute, Chapman University and DSE, University of Bologna)

  • Lukas Hohl

    (University of Basel)

Abstract

We stress-test the limits of the power of group identity in the context of cooperation by constructing laboratory economies where participants confront an indefinitely repeated social dilemma as strangers. Group identity is artificially induced by ran-dom assignment to color-coded groups, and reinforced by an initial cooperation task played in-group and in fixed pairs. Subsequently subjects interact in-group and out-group in large economies, as strangers. Indefinite repetition guarantees full cooperation is an equilibrium. Decision-makers can discriminate based on group aÿliation, but cannot observe past behaviors. We find no evidence of group biases. This suggests that group e ects are less likely to emerge when players cannot easily observe and compare characteristics on which to base categorizations and behaviors.

Suggested Citation

  • Gabriele Camera & Lukas Hohl, 2021. "Group-identity and long-run cooperation: an experiment," Working Papers 21-10, Chapman University, Economic Science Institute.
    • Handle: RePEc:chu:wpaper:21-10
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    File URL: https://digitalcommons.chapman.edu/esi_working_papers/347/
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    References listed on IDEAS

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    1. Gabriele Camera & Lukas Hohl & Rolf Weder, 2023. "Inequality as a barrier to economic integration? An experiment," Experimental Economics, Springer;Economic Science Association, vol. 26(2), pages 383-411, April.

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    More about this item

    Keywords

    large groups; indefinitely repeated game; social norms;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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