G2TT
来源类型Discussion paper
规范类型论文
来源IDDP14535
DP14535 Market Competition and Discrimination
Abu Siddique; Michael Vlassopoulos; Yves Zenou
发表日期2020-03-27
出版年2020
语种英语
摘要Becker (1957) famously postulated that taste-based discrimination should disappear in the long run if the market operates competitively. This study provides evidence in support of this idea by carrying out a field experiment in the context of the rice market in Bangladesh. We recruit professional rice buyers (middlemen) to act as judges in a rice competition by providing their quality rating and willingness to pay (WTP) for rice samples that we randomly associate with farmers bearing ethnic majority or minority names. First, we find that there is no ethnic difference in buyers' evaluation of rice quality. Second, we find that local buyers, who have local monopsony power, discriminate against ethnic minority farmers by expressing a lower WTP for their rice (2.7% less) relative to that of ethnic majority farmers. Third, we find that wholesale buyers, who face fierce competition in the marketplace, do not discriminate against ethnic minority farmers in terms of their WTP for rice. In terms of mechanisms, we show through a second lab-in-the-field experiment and survey information that local and wholesale buyers do not have different tastes for discrimination. This suggests that market competition can eliminate the discrimination of wholesale buyers.
主题Development Economics
关键词Discrimination Market competition Ethnicity Bangladesh
URLhttps://cepr.org/publications/dp14535
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/543440
推荐引用方式
GB/T 7714
Abu Siddique,Michael Vlassopoulos,Yves Zenou. DP14535 Market Competition and Discrimination. 2020.
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