["Kyklos, EarlyView. ", "\nABSTRACT\nMany works highlighted the role of identity in promoting in‐group favoritism, reporting however contrasting empirical results when such behavior entails a personal cost. This paper studies the occurrence of in‐group favoritism within and across communities with heterogeneous generalized trust. It uses data from an Italian TV show where four restaurant owners compete to be declared the best in a certain food category. Results point to a higher degree of in‐group favoritism in high‐trust than in low‐trust communities, while no comparable pattern emerges for behavior towards out‐group members. These findings suggest that priming group identity does not necessarily lead to an increase of in‐group favoritism. Rather, this mechanism is mediated by the characteristics of the local environment in which individuals operate.\n"]