NancyLebovitz comments on Manufacturing prejudice - Less Wrong
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This hypothesis would explain outgroup/ingroup activity only in contexts where there are associated values. That doesn't fit in the example in question.
No, no. You just have to have two groups. "- And that was quite sufficient."
That shows that given an outgroup people will construct narratives about different value systems. That doesn't support Nazgulnarsil's claim that "we hate not having outgroups because they serve so well to help reassure us in our ingroup values" which is about the artificial construction of outgroups, not what happens after there's an outgroup.