We study to what extent collusive behavior is affected by the awareness of negative externalities. Theories of outcome-based social preferences suggest that negative externalities make collusion harder to sustain than predicted by standard economic theory, while sociological theories of social...

We study how close personal contact with minorities affects in-group and out-group trust in a field experiment in the armed forces. Soldiers are randomly assigned to rooms with or without ethnic minorities. At the end of the recruit period, we measure trust by using a trust game. Results...