Abstract

This paper provides an analysis of discrimination and prejudices from the perspective of inductive game theory. We extend the festival game, originally given by Kaneko–Matsui, to include new constraints on the observability of ethnic identities and on accessible locations for players. We characterize the Nash equilibrium set, which reveals a different variety of segregation patterns and discriminatory behavior. In order to facilitate the analysis of discrimination and prejudices, we introduce a measure of discrimination, which chooses a representative equilibrium with the smallest degree of discrimination. Using this measure, we discuss various new phenomena, such as discrimination in an ethnic hierarchy; similar ethnicities as discriminated and as discriminating; and mutual discrimination. The introduction of limited observability and accessibility enables us to obtain those results.

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