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On the Effects of Group Identity in Strategic Environments

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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 a player's social preferences, as identified in earlier research, but also affects the decision making process, independent of changes in the utility function.

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  • Le Coq, Chloe & Tremewan, James & Wagner, Alexander K., 2013. "On the Effects of Group Identity in Strategic Environments," SITE Working Paper Series 24, Stockholm School of Economics, Stockholm Institute of Transition Economics, revised 10 Oct 2014.
  • Handle: RePEc:hhs:hasite:0024
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    Cited by:

    1. Kets, Willemien & Sandroni, Alvaro, 2015. "Challenging Conformity: A Case for Diversity," MPRA Paper 68166, University Library of Munich, Germany.
    2. Jean-Robert Tyran & Alexander K. Wagner, 2016. "Experimental Evidence on Expressive Voting," Discussion Papers 16-12, University of Copenhagen. Department of Economics.
    3. repec:eee:jeborg:v:143:y:2017:i:c:p:254-271 is not listed on IDEAS

    More about this item

    Keywords

    Group identity; centipede game; steg hunt game; experiment;

    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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