Abstract
We develop an evolutionary model for individual discriminatory behavior that emerges naturally in a mixed population as an adaptive strategy. Our findings show that, when individuals have finite memory and face uncertain environments, they may rely on prior biases and observable group traits to make decisions, changing their discriminatory practices. We also demonstrate that a finite memory is a consequence of natural selection because it leads to higher fitness in dynamic environments with mutations. This adaptability allows individuals with finite memory to better respond to environmental variability, offering a potential evolutionary advantage. Our study suggests that memory constraints and environmental changes are critical factors in sustaining biased behavior, suggesting insights into the persistence of discrimination in real-world settings and possible mitigation strategies across fields, including education, policymaking, and artificial intelligence.