Understanding Prejudice in Social Identity Theory

In the context of social psychology, the concepts of prejudice and discrimination often intersect with the theories of social identity and in-group versus out-group dynamics. Social identity theory posits that individuals derive a sense of pride and self-esteem from their group memberships. This can lead to favoring one’s in-group while discriminating against out-groups. In a controlled experiment, researchers found that participants displayed a strong preference for their in-group, even when group assignments were random and arbitrary. Given this context, which of the following statements most accurately reflects the relationship between social identity and the development of prejudice?