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Anticipation of Discrimination and Misperceptions in Cooperation Dilemmas

Devesh Rustagi and Matthias Schief
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Matthias Schief: Organisation for Economic Co-operation and Development (OECD)

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

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.

Keywords: discrimination; anticipation; misperception; trust game; cooperation dilemma; affective polarization; United Kingdom JEL Classification: C91; C93; J15; D72; Z13 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-exp
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