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Group Identity and Social Preferences


We present a laboratory experiment that measures the
effects of induced group identity on social preferences. We find that when participants are matched with an
ingroup member they show a 47-percent increase in charity concerns and a 93-percent decrease in envy. Likewise, participants are 19 percent more likely to reward an ingroup match for good behavior, but 13 percent less likely to punish an ingroup match for misbehavior. Furthermore, participants are significantly more likely to choose social-welfare-maximizing actions when matched with an ingroup member. All results are consistent with the hypothesis that participants are more altruistic towards an ingroup match.