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American Economic Review: Vol. 99 No. 1 (March 2009)
AER Volume. 99, Issue 1 | 
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Group Identity and Social Preferences
Article Citation
Chen, Yan, and
Sherry Xin Li. 2009. "Group Identity and Social Preferences."
American Economic Review,
99(1): 431-57.
DOI: 10.1257/aer.99.1.431
DOI: 10.1257/aer.99.1.431
Abstract
We present a laboratory experiment that measures the effects of induced group
identity on social preferences. We find that when participants are matched with
an ingroup member, they show a 47 percent increase in charity concerns and a
93 percent decrease in envy. Likewise, participants are 19 percent more likely to
reward an ingroup match for good behavior, but 13 percent less likely to punish
an ingroup match for misbehavior. Furthermore, participants are significantly
more likely to choose social-welfare-maximizing actions when matched with an
ingroup member. All results are consistent with the hypothesis that participants
are more altruistic toward an ingroup match. (JEL C91, D03, Z13)
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Authors
Chen, Yan (U MI)
Li, Sherry Xin (U TX, Dallas)
Li, Sherry Xin (U TX, Dallas)
JEL Classifications
C91: Design of Experiments: Laboratory, Individual
D03: Behavioral Economics: Underlying Principles
Z13: Economic Sociology; Economic Anthropology
D03: Behavioral Economics: Underlying Principles
Z13: Economic Sociology; Economic Anthropology
