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We study the role of village-level religious fragmentation on intra-and inter-group cooperation in India. We report on data on two-player Prisoners Dilemma and Stag Hunt experiments played by 516 Hindu and Muslim participants in rural India. Our treatments are the identity of the two players and the degree of village-level religious heterogeneity. In religiously-heterogeneous villages, cooperation rates in the Prisoners Dilemma are higher when subjects play with another in-group member for both Hindus and Muslims, but to a much lesser extent in the Stag Hunt game. This suggests that positive in-group biases operate primarily on the willingness to achieve socially efficient outcomes, rather than through beliefs about the actions by one's counterpart. Interestingly, cooperation rates among people of the same religion are significantly lower in homogeneous villages than in fragmented villages in both games. This is likely because a sense of group identity is only meaningful in the presence of an outgroup. This, together with little evidence for out-group prejudice in either game, means religious diversity is beneficial.JEL -classification numbers: C93, D03, H41

We examine the impact of religious identity and village-level religious fragmentation on behavior in Tullock contests. We report on a series of two-player Tullock contest experiments conducted on a sample of 516 Hindu and Muslim participants in rural West Bengal, India. Our treatments are the identity of the two players and the degree of religious fragmentation in the village where subjects reside. Our main finding is that the effect of social identity is small and inconsistent across the two religious groups in our study. While we find small but statistically significant results in line with our hypotheses in the Hindu sample, we find no statistically significant effects in the Muslim sample. This is in contrast to evidence from Chakravarty et al. (2016), who report significant differences in cooperation levels in prisoners’ dilemma and stag hunt games, both in terms of village composition and identity. We attribute this to the fact that social identity may have a more powerful effect on cooperation than on conflict.

No abstract

We study the role of village-level religious fragmentation on intra-and inter-group cooperation in India. We report on data on two-player Prisoners Dilemma and Stag Hunt experiments played by 516 Hindu and Muslim participants in rural India. Our treatments are the identity of the two players and the degree of village-level religious heterogeneity. In religiously-heterogeneous villages, cooperation rates in the Prisoners Dilemma are higher when subjects play with another in-group member for both Hindus and Muslims, but to a much lesser extent in the Stag Hunt game. This suggests that positive in-group biases operate primarily on the willingness to achieve socially efficient outcomes, rather than through beliefs about the actions by one's counterpart. Interestingly, cooperation rates among people of the same religion are significantly lower in homogeneous villages than in fragmented villages in both games. This is likely because a sense of group identity is only meaningful in the presence of an outgroup. This, together with little evidence for out-group prejudice in either game, means religious diversity is beneficial.