This thesis uses laboratory and field experiments to examine the underlying motivations that drive biased and discriminatory behaviour. Its focus is on the differential treatment of others that stems from individuals’ preferences for particular social and ethnic groups. The unifying theme of this thesis is the exploration of how such discriminatory tastes can manifest themselves within individuals’ social and other–regarding preferences, determining the extent to which they care about the welfare of others. The prevalence and implications of these types of preferences are considered in both market and non–market settings