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On the Effects of Group Identity in Strategic Environments

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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File URL: http://swopec.hhs.se/hasite/papers/hasite0024.pdf
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Paper provided by Stockholm Institute of Transition Economics, Stockholm School of Economics in its series SITE Working Paper Series with number 24.

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Length: 34 pages
Date of creation: 30 Sep 2013
Date of revision: 09 Sep 2014
Handle: RePEc:hhs:hasite:0024
Contact details of provider: Postal:
Stockholm Institute of Transition Economics, Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden

Phone: (+46 8) 736 9670
Fax: (+46 8) 31 64 22
Web page: http://www.hhs.se/site/

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