Linguistic intervention unlocks the economic gains of diversity.

A brief linguistic intervention restores cross-race trade and closes performance gaps in experimental economies where gains depend on diverse exchanges.

• Why it matters: Understanding how communication influences economic interactions across racial lines addresses a key barrier to equitable trade and cooperation, with implications for reducing social divides.
• What they did: The study involved incentivized experimental economies with participants engaging in spontaneous trade, measuring communication patterns, and testing a linguistic toolkit to improve interaction and trade outcomes.
• The result: The intervention increased communication and signaling, restoring specialization and cross-race trade when gains depend on diversity, highlighting language as a tool to reduce transaction costs and improve cooperation.