Scandinavian Working Papers in Economics

CERE Working Papers,
CERE - the Center for Environmental and Resource Economics

No 2024:1: Social antagonism, identity-driven beliefs, and loss avoidance

Klarizze Anne Martin Puzon (), Ruth Tacneng () and Thierno Barry ()
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Klarizze Anne Martin Puzon: Royal Holloway University of London; CERE - the Center for Environmental and Resource Economics
Ruth Tacneng: Universite de Limoges, France
Thierno Barry: Universite de Limoges, France

Abstract: We use a lab-in-the-field experiment to study identity preferences, other-regarding beliefs, and conflict behavior among the Fulani and Malinke in Guinea, Sub-Saharan Africa. In a hawk-dove game, we explore the existence of out-group hostility and in-group cooperation compared to the baseline where pairs are uninformed of each other’s region of origin. We observe that ethnic identity, especially among the Malinke, encourages loss aversion in situations where negative earnings are possible. Identity-driven beliefs, i.e. expectations of others, lead to either reciprocity among homogeneous pairs or materialism in diverse pairs. Using complementary survey data, we also find that high out-group trust and less linguistic diversity are correlated with conflict avoidance.

Keywords: Social identity; Experiment; Sub-Saharan Africa; Resource-rich economies

JEL-codes: C93; D74; D91; Q01

Language: English

xx pages, June 4, 2024

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