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AbstractWe use Hammond and Axelrod's (Hammond, R. A. & Axelrod, R. (2006). The evolution of ethnocentrism. Journal of Conflict Resolution, 50, 6: 926–936) agent‐based model of ethnocentrism to show how people's willingness to cooperate with outsiders is affected by mutually beneficial exchange. In environments where one person gains at the expense of others ("charity economies"), we find discrimination to be a dominant behavior. However, non‐discrimination becomes the dominant behavior when an environment contains productive investment and mutually beneficial exchange ("investment economies"). These results point to market‐improving policy prescriptions to reduce racial/ethnic tension and the conflict that arise from it.

Whether preparing us for economic recovery after the zombie apocalypse, analyzing vampire investment strategies, or illuminating the market forces that affect vampire-human romances, Economics of the Undead: Zombies, Vampires, and the Dismal Science gives both seasoned economists and layman readers something to sink their teeth into.