Prejudice can be explained by our tendency to identify ourselves as part of a group and to classify other people as either within or outside that group
The individual's self concept becomes wrapped up in the ingroup and so people begin to see their ingroup as better than the outgroup, enhancing self esteem
Wetherall found cultural differences in minimal group studies conducted with white and Polynesian children in New Zealand, where the latter were more generous towards the outgroup
Social Identity Theory has practical applications, such as in decreasing or preventing conflict in groups like football hooligans by integrating them together to prevent ingroup and outgroup formation