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This lecture explores the concept of social identity, emphasizing how categorizing the world not only simplifies it but also defines who we are. It delves into the relationship between categorization and identity, explaining the function of this link. The lecture covers theories such as the Social Identity Theory (SIT) by Tajfel & Turner, highlighting the importance of maintaining or enhancing self-esteem through social comparisons. It also discusses conflicts between groups, focusing on the nature of group goals and how they lead to either competition or cooperation. Various studies and experiments, like Sherif et al.'s 'Robbers Cave Experiment,' are presented to illustrate how conflicts between groups can escalate into stereotypes and discrimination. The lecture concludes with insights on how group interactions influence perceptions and behaviors, ultimately shaping intergroup dynamics.