This paper examines how beliefs and preferences drive identity-conforming consumption or investments. We introduce a … theory that explains how identity distorts individuals' beliefs about potential outcomes and imposes psychic costs on … a neutral stance. The results indicate that soccer fans have overoptimistic beliefs about match outcomes that align with …

-scale, incentivized lab-in-field-experiment based on the investment game, allowing us to assess the in-group bias of native German … design in our experiment. These findings suggest that extra efforts are needed to counteract low levels of inclusivity and …