Role of Information Asymmetry and Situational Salience in Reducing Intergroup Bias: The Case of Ultimatum Games

While majority of the literature documents the preponderance of social identity-related biases in favor of in-group members, this research investigates factors that may attenuate the bias. Examining intergroup bias within the realm of information availability and accessibility, this research highlights malleability of judgments and decisions as a function of social identity in both complete and incomplete information situations in the context of ultimatum games. Study 1 replicates the positive bias toward in-group members even in situations where individuals know that the counterpart is behaving unfairly. Study 2 shows that the intergroup bias is attenuated for relatively unfavorable offers in incomplete information situations. However, the intergroup bias is persistent for relatively favorable offers. Study 3 shows that making situational constraints salient also attenuates the intergroup bias for relatively favorable offers. Together, the findings identify conditions, based on information availability and accessibility, under which the intergroup bias can be corrected.