Are minorities more vulnerable to opportunism? We find that individuals from a minority group face greater danger of being cheated by an opportunistic firm because trade with the group is less frequent and the value of a reputation for fairness toward the group is correspondingly smaller. If the majority is sufficiently large it can only lose from a solidarity strategy of punishing opportunism against the minority, so business as usual with the majority can continue even after the minority is

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... eated. The prediction that smaller groups are more susceptible to discrimination distinguishes the model from most other discrimination models. JEL Classification Categories: J71, J24, D63, L14.