Scandinavian Working Papers in Economics
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Stockholm Institute of Transition Economics, Stockholm School of Economics SITE Working Paper Series

No 24:
On the Effects of Group Identity in Strategic Environments

Chloe Le Coq (), James Tremewan () and Alexander K. Wagner ()

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.

Keywords: Group identity; centipede game; steg hunt game; experiment; (follow links to similar papers)

JEL-Codes: C72; C91; C92; D83; (follow links to similar papers)

34 pages, September 30, 2013, Revised October 10, 2014

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