I have heard a very hard-to-test theory, which holds that stereotypes emerge ex nihilo but then become self-fulfilling prophecies.
I have heard this claim. It makes the most sense when you talk about red-lining and recidivism, but it’s really implausible that the equilibrium is for the stereotype to come true.
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Observation and exageration creating stereotypes, leaving a gap between reality and stereotypes is my guess. The gap can be slowly filled to match the stereotype making it true or it can be that only observations matching the stereotypes are registered and reinforce it.
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