Markets Reduce Discrimination

Müller, Daniel und Paetzel, Fabian (13. Februar 2021): Markets Reduce Discrimination. Münchener Wirtschaftswissenschaftliche Beiträge (VWL) 2021

Abstract

This paper studies the ability of markets to alleviate taste-based discrimination in a laboratory experiment. We find that markets significantly reduce discrimination relative to individual choice situations with the same payoff structure and the same social group membership of the trading partner. We identify three main mechanisms behind this effect. First, the price of prejudice matters in both situations, but significantly more so in the market. Second, markets reduce identification with one’s social group. Third, markets diminish egalitarian preferences. Passive subjects correctly anticipate the main effect. We confirm the main treatment effect in an online experiment with natural groups.

• Dokumententyp: Paper
• Keywords: Discrimination, markets and morals, social identity, minimal groups, natural groups, laboratory experiment
• Fakultät: Volkswirtschaft > Lehrstühle > Lehrstuhl für Finanzwissenschaft ; Volkswirtschaft > Lehrstühle > Lehrstuhl für Nationalökonomie
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: C91, D01, D40, J71
• Sprache: Englisch

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