How does a shared identity change the outcome of conflict? Many scholars in political science and behavioral economics suggest that identity has some power to change individual actors' behavior in social interactions. In this study, I use a bargaining model and an experimental design to examine the influence of identity on conflict behavior as well as outcomes. In particular, I examine whether the power of identity can be in effect under a conflict situation that is usually determined by material power distribution. By controlling noise, the experimental design investigates (1) if the presence of shared identity solves the commitment problem without external enforcement; (2) how the in-group amity and the out-group enmity (differently) influence the chance of reciprocating a hostile action of the other actor.
