Discrimination as favoritism: The private benefits and social costs of in-group favoritism in an experimental labor market
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9,760 citations
"Discrimination as favoritism: The p..." refers methods in this paper
...The experiment was computerized using the Z-tree software package (Fischbacher, 2007)....
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6,919 citations
"Discrimination as favoritism: The p..." refers background or methods in this paper
...Models of inequality aversion were first proposed by Bolton (1991) and refined by Fehr and Schmidt (1999) and Bolton and Ockenfels (2000)....
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...Using the Blanco et al (2011) tasks, we calculate the and parameters for each subject described in Fehr and Schmidt (1999) as measures of disadvantageous and advantageous inequality, respectively....
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...If the unemployed suffer from disadvantageous inequality aversion then they may be willing to burn money in order to reduce income differences (Fehr and Schmidt, 1999)....
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5,391 citations
"Discrimination as favoritism: The p..." refers methods in this paper
...Models of inequality aversion were first proposed by Bolton (1991) and refined by Fehr and Schmidt (1999) and Bolton and Ockenfels (2000)....
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4,981 citations
"Discrimination as favoritism: The p..." refers background in this paper
...While there are limitations to how much laboratory money-burning choices can teach us about true societal costs like fragmentation and increased conflict, our data may be seen as providing at least some evidence of one micro-foundation of societal tension, riots, or less extreme but still costly forms of antisocial behavior....
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...Thus, the unemployed may be more willing to sacrifice a part of their payoffs in order to burn employers’ money in Ranking treatments, even when there are no monetary gains from doing so (Rabin, 1993; Falk and Fischbacher, 2006)....
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...However, here we present a framework that incorporates moral motivations (see Figuieres et al, 2013 for details on such models), reciprocity (see Rabin, 1993, for a formal model incorporating fairness into a utility function), and taste-based discrimination (introduced in Becker, 1957)....
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...While this documents multiple dimensions on which discrimination may operate, even in a laboratory environment (see Dickinson and Oaxaca, 2014), the potential for positive reciprocity towards employers by those hired and/or offered high wages implies that such in-group favoritism may be in the monetary payoff interest of the employer....
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...The second component of the moral obligation function can be interpreted as the worker i’s belief regarding employer j’s fairness, in the spirit of Rabin (1993), where a high wage (perhaps anchored around the perceived equitable wage) is perceived as a kind action.17 The moral obligation function…...
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4,523 citations
"Discrimination as favoritism: The p..." refers background in this paper
...In-group favoritism and out-group discrimination have been very robust findings in the social psychology literature (Tajfel et al. 1971; Billig and Tajfel, 1973; Turner and Brown, 1978; Vaughan et al. 1981; Diehl, 1988; Pratto and Shih, 2000)....
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...21In-group favoritism and out-group discrimination have been very robust findings in the social psychology literature (Tajfel et al. 1971; Billig and Tajfel, 1973; Turner and Brown, 1978; Vaughan et al. 1981; Diehl, 1988; Pratto and Shih, 2000)....
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