Cross-Racial Envy and Underinvestment in South Africa

By D. Haile, Karim Sadrieh, H. Verbon. Social Science Research Network, 2006

106 citations recorded by the source corpus.

Trust games are employed to investigate the effect of heterogeneity in income and race on cooperation in South Africa. The amount of socio-economic information available to the subjects about their counterparts is varied. No significant behavioural differences are observed, when no such information is provided. However, when the information is available, it significantly affects individual trust behaviour. The low income subjects from both racial groups invest significantly less in partnerships with the high income subjects of the other racial group than in any other partnership. We attribute this behaviour to cross-racial envy, which on aggregate may lead to substantial underinvestment in the economy.

Subfields: Demography, Safety Research, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/7d7938276d331c0a2eb4c40649ca8c1b480df6b1

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In Demography

  1. Christian Zehnder
  2. Armin Falk
  3. Ernst Fehr
  4. Klaus M. Schmidt
  5. Stephan Meier
  6. Colin F. Camerer
  7. Bruno S. Frey
  8. Gary Charness

In Safety Research

  1. Christian Zehnder
  2. Armin Falk
  3. Ernst Fehr
  4. Thomas J. Dohmen
  5. Gary Charness
  6. Klaus M. Schmidt
  7. Michael Kosfeld
  8. Matthias Sutter

In Sociology and Political Science

  1. Christian Zehnder
  2. Armin Falk
  3. Ernst Fehr
  4. Matthias Sutter
  5. Margaret H. Christ
  6. Thomas J. Dohmen
  7. Gary Charness
  8. Stefan T. Trautmann

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