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We study the effect of interpersonal but impersonal interactions on in-group bias in allocational choices. Before the elicitation of the choices, individuals either engage in a cooperative or competitive interaction, or in no interaction at all. We find that a cooperative interaction eliminates any in-group bias as compared to the case where there is no interaction, and even introduces relatively more pro-sociality with respect to out-group. A competitive interaction reduces pro-sociality in general, irrespective of whether others are in- or out-group.