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Anticipation of Discrimination and Misperceptions in Cooperation Dilemmas

Author

Listed:
  • Rustagi, Devesh

    (University of Warwick & CAGE)

  • Schief, Matthias

    (Organisation for Economic Co-operation and Development (OECD))

Abstract

Does anticipation of discrimination (beliefs individuals hold about the behavior of others towards them) undermine cooperation? We develop a new design to isolate the role of anticipation from confounding motives. Using the trust game, we measure anticipation as the double difference between the amount transferred to outgroup vs. ingroup trustees when the trustor's own identity is revealed vs. concealed. Using the context of affective polarization, we find that anticipation of discrimination undermines cooperation by the same magnitude as taste-based and statistical dis- crimination. However, anticipation of discrimination is misperceived. Our method can be used to study anticipation of discrimination across societal divisions.

Suggested Citation

  • Rustagi, Devesh & Schief, Matthias, 2024. "Anticipation of Discrimination and Misperceptions in Cooperation Dilemmas," CAGE Online Working Paper Series 738, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:738
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp738.2024.pdf
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    References listed on IDEAS

    as
    1. Urs Fischbacher & Simon Gachter, 2010. "Social Preferences, Beliefs, and the Dynamics of Free Riding in Public Goods Experiments," American Economic Review, American Economic Association, vol. 100(1), pages 541-556, March.
    2. Louis-Pierre Lepage & Xiaomeng Li & Basit Zafar, 2022. "Anticipated Gender Discrimination and Grade Disclosure," NBER Working Papers 30765, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    discrimination; anticipation; misperception; trust game; cooperation dilemma; affective polarization; United Kingdom JEL Classification: C91; C93; J15; D72; Z13;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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