Outgroups are usually viewed with suspicion and expected to discriminate against the ingroup. The present study demonstrated that ingroup members attributed past discriminatory behaviour committed by individuals of unknown group membership more to outgroup members than to either ingroup members or members of a neutral group. In contrast, past egalitarian behaviour was attributed less to outgroup members than to members of a neutral group. Ingroup members also expected more discrimination from a future outgroup allocator than from a future neutral group allocator. Finally, the study showed that ingroup members' own behaviour in allocating money became more biased in favour of ingroup members vis-á-vis outgroup members when the future allocator was from an outgroup rather than from a neutral group and when they had witnessed the discriminatory behaviour of an allocator in the past.