HOMOPHILY AND IN-GROUP BIAS IN POVERTY AND PENSION GAMES

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Öztürk Göktuna B., Yurdakurban E. Ö.

EcoMod2022 - International Conference on Economic Modeling and Data Science, Ljubljana, Slovenya, 14 - 16 Eylül 2022

  • Yayın Türü: Bildiri / Tam Metin Bildiri
  • Basıldığı Şehir: Ljubljana
  • Basıldığı Ülke: Slovenya
  • Galatasaray Üniversitesi Adresli: Evet

Özet

The purpose of this research is to explain the force of homophily and in-group bias that involve some degree of discrimination towards other, in the context of the poverty and pension games. In these gift giving settings where mutual gift giving is efficient but gifts are individually costly, we analyze the effects of in-group bias and homophily on reciprocity, rewarding and punishing attitudes using artificial groupings in binary and overlapping matching structure of poverty and pension games respectively. We compare three different scenarios; first all participants are identical (control), second participants are assigned randomly to two groups (scenario II) and third an endogenous matching scenario where participants can affect their likelihood to be matched with a participant of the same group (scenario III). The second and third scenario are designed to measure the effects of group identity and group preference on transfer decisions. Results show that first participants behaved differently in different matching structures; they have shown preference to interact with similar opponents and there was evidence of in-group bias in their transfer decisions.