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Culture Clash: Incompatible Reputation Mechanisms and Intergroup Conflict

Author

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  • Vasiliki Fouka
  • Alain Schläpfer

Abstract

Under what conditions does intergroup contact lead to conflict? We provide a novel answer to this question by highlighting the role of reputation mechanisms in sustaining cooperation. Reputational concerns can deter defection in one-time interactions within a group, but the informational content of reputation can differ across groups. We consider two types of information. Punishment-based reputation (a "culture of honor") represents past sanctioning behavior of individuals, while a reputation based on image scoring captures past cooperative and uncooperative acts. While either type can successfully sustain cooperation within a group, we show theoretically that interactions of individuals from a punishment-based culture with those from a culture of image scoring can lead to widespread inter-group tensions. Mutual cooperation is a more likely outcome if both cultures use a similar reputation mechanism. We find empirical support for the model's predictions across phenomena related to the emergence of social tensions. Cross-cultural differences in the importance of retaliation predict patterns of host population discrimination against immigrants and variation in bilateral conflict across ethnic groups.

Suggested Citation

  • Vasiliki Fouka & Alain Schläpfer, 2022. "Culture Clash: Incompatible Reputation Mechanisms and Intergroup Conflict," NBER Working Papers 30517, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:30517
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    Cited by:

    1. Matteo Sestito, 2023. "Identity conflict, ethnocentrism and social cohesion," AMSE Working Papers 2304, Aix-Marseille School of Economics, France.
    2. Matteo Sestito, 2023. "Identity conflict, ethnocentrism and social cohesion," Working Papers halshs-03953975, HAL.
    3. Schläpfer, Alain, 2024. "Cross-cultural differences in retaliation: Evidence from the soccer field," Journal of Economic Behavior & Organization, Elsevier, vol. 223(C), pages 216-233.

    More about this item

    JEL classification:

    • P0 - Political Economy and Comparative Economic Systems - - General
    • Z1 - Other Special Topics - - Cultural Economics

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