Ethnic Risk Sharing among the Rural Population in Vietnam - An Experimental Approach

We investigate the impact of mutual support in case of financial losses within a multi-ethnical society in Vietnam by using an experimental approach. We test for the effects of ethnic discrimination with regards to risk sharing by conducting the Solidarity Game based on Selten & Ockenfels (1998). We find no evidence for ethnic discrimination between the groups. But, we can show remarkable differences in behavior when it comes to mutual support in times of idiosyncratic shocks where the richer group showed a rather altruistic behavior of mutual support towards the poorer and the poorer group based their decisions in the experimental lab on past real life experiences.