This document discusses social identity theory and the motivational and cognitive sources of prejudice. Social identity theory proposes that people categorize themselves into ingroups and outgroups, favoring the ingroup. Those with lower self-esteem tend to be more prejudiced. Cognitive sources include spontaneously categorizing people into groups based on perceived similarities and differences, seeing outgroups as more homogenous than ingroups, and perceiving distinctive individuals as having exaggerated qualities.