Premium
A note on mutually beneficial exchange and discrimination
Author(s) -
Duncan Thomas K.,
Farhat Daniel
Publication year - 2019
Publication title -
conflict resolution quarterly
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.323
H-Index - 21
eISSN - 1541-1508
pISSN - 1536-5581
DOI - 10.1002/crq.21269
Subject(s) - ethnocentrism , ethnic group , investment (military) , point (geometry) , economics , social psychology , microeconomics , positive economics , sociology , psychology , political science , law , politics , geometry , mathematics
We use Hammond and Axelrod's (Hammond, R. A. & Axelrod, R. (2006). The evolution of ethnocentrism. Journal of Conflict Resolution , 50, 6: 926–936) agent‐based model of ethnocentrism to show how people's willingness to cooperate with outsiders is affected by mutually beneficial exchange. In environments where one person gains at the expense of others (“charity economies”), we find discrimination to be a dominant behavior. However, non‐discrimination becomes the dominant behavior when an environment contains productive investment and mutually beneficial exchange (“investment economies”). These results point to market‐improving policy prescriptions to reduce racial/ethnic tension and the conflict that arise from it.