Inequality leads to the evolution of intolerance in reputation-based populations.

This work studies the impact of economic inequality on the evolution of intolerance through a reputation-based model of indirect reciprocity. Results show that economic inequality is a powerful enhancer of intolerance, inducing the escalation of out-group discrimination even without the presence of new intolerant mutants. It also generates behavior modifications within tolerant disfavored minorities: their members either relax punishments against the uncooperative or prioritize helping the wealthy, even suffering discrimination in return. On the other hand, the redistribution of wealth is proven as a viable solution to avoid the spread of intolerance as long as it increases equality and is implemented before intolerance permeates part of the population.