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Previous research illustrates how stereotyping is activated and maintained in small group interactions. This often occurs in task-oriented settings where members refer to their and other’s characteristics to make generalizations about performance. There have been studies demonstrating how providing information about actors’ multiple characteristics might change the effects of inequality as a result of stereotyping. However, there have been far fewer investigations of how context or institutional rules affect inequality, yet these rules are easier to change than individual characteristics. For this project, I examine how context can change the dynamics of interaction and consequently change inequality. I conduct a two condition experimental study with three-person groups composed of one Black and two White females to examine how the definition of the task affects inequality between group members. Intergroup competition in the group task is tested to determine whether it increases inequality compared to non-competitive conditions. Given that the only difference between group members is race and that racial stereotypes persist in our society in terms competency and ability, I argue that competing groups will activate racial stereotypes more than non-competing groups for the sake of “doing well.” As a result, Black participants in competing groups should have fewer opportunities to contribute to the group task compared to White group members, which is evidence of greater inequality. I further predict that group productivity will worsen in competitive compared to non-competitive conditions due to less contribution toward the task overall. Additional predictions center on group member’s influence and affective measures.