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Entitlements and Loyalty in Groups: An Experimental Study

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  • Paetzel, Fabian
  • Sausgruber, Rupert

Abstract

We study loyalty in groups that are exogenously assigned based on members' performances in a task. We observe that in-group bias is strong and significant among subjects who score high in performance, and that it is weak and insignificant among those who score low. This asymmetric pattern is mirrored in the punishment of disloyal subjects within groups. The results are consistent with an explanation according to which fairness judgments depend on entitlement considerations and provide a new perspective on theory and empirical research that argues that group identity increases with the status of the group.

Suggested Citation

  • Paetzel, Fabian & Sausgruber, Rupert, 2017. "Entitlements and Loyalty in Groups: An Experimental Study," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168224, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc17:168224
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    More about this item

    Keywords

    entitlements; fairness; group loyalty; status; punishment; social norms; minimal groups;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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