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Group identification and giving: in-group love, out-group hate and their crowding out

Author

Listed:
  • Shaun P. Hargreaves Heap

    (Department of Political Economy, King’s College London)

  • Eugenio Levi

    (Department of Public Economics, Masaryk University)

  • Abhijit Ramalingam

    (Department of Economics, Walker College of Business, Appalachian State University)

Abstract

Using a dictator game experiment, we examine whether the introduction of group identities affects giving. Group identities can activate feelings of in-group love and out-group hate to create an in-group bias. In addition, group identities may spawn social sanctions that are designed to reinforce this in-group bias. We find that the aggregate effect on giving of group identities alone tends to be positive but depends on the relative size of two sub-sets of the subject pool: those who exhibit an in-group bias and those who do not. With the latter, the introduction of group identities has no effect on giving. With the former, the in-group bias arises from both in-group love and out-group hate and with interactions skewed towards own group members, in-group love will dominate to produce an increase in gifts. Sanctions too depend for their aggregate effect on the relative size of these two sub-sets in the population, but in the opposite way. This is because in-group biased preferences are crowded-in by the sanctions among the hitherto equal givers and in-group biased preferences are crowded-out among those who would otherwise exhibit the in-group bias.

Suggested Citation

  • Shaun P. Hargreaves Heap & Eugenio Levi & Abhijit Ramalingam, 2021. "Group identification and giving: in-group love, out-group hate and their crowding out," MUNI ECON Working Papers 2021-07, Masaryk University, revised Feb 2023.
    • Handle: RePEc:mub:wpaper:2021-07
    DOI: 10.5817/WP_MUNI_ECON_2021-07
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    More about this item

    Keywords

    dictator game; in-group love; out-group hate; crowding-out;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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