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Race and Gender Discrimination in Bargaining for a New Car

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Author Info
Ayres, Ian
Siegelman, Peter

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Abstract

More than three hundred paired audits at new-car dealerships reveal that dealers quoted significantly lower prices to white males than to black or female test buyers using identical, scripted bargaining strategies. Ancillary evidence suggests that the dealerships' disparate treatment of women and blacks may be caused by dealers' statistical inferences about consumers' reservation prices, but the data do not strongly support any single theory of discrimination. Copyright 1995 by American Economic Association.

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Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 85 (1995)
Issue (Month): 3 (June)
Pages: 304-21
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Handle: RePEc:aea:aecrev:v:85:y:1995:i:3:p:304-21

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  1. Hiroshi Ono & Madeline Zavodny, 2002. "Race, Internet usage, and E-commerce," Working Paper 2002-1, Federal Reserve Bank of Atlanta. [Downloadable!]
  2. David W. Harless & George E. Hoffer, 2002. "Do Women Pay More for New Vehicles? Evidence from Transaction Price Data," American Economic Review, American Economic Association, vol. 92(1), pages 270-279, March. [Downloadable!] (restricted)
  3. Nabanita Datta Gupta & Anders Poulsen & AMarie-Claire Villeval, 2005. "Male and Female Competitive Behavior: Experimental Evidence," IZA Discussion Papers 1833, Institute for the Study of Labor (IZA). [Downloadable!]
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  4. Yinger, John, 1998. "Evidence on Discrimination in Consumer Markets," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 23-40, Spring. [Downloadable!] (restricted)
  5. Holm, Håkan, 2000. "What’s in a Name? - An ethnical discrimination experiment," Working Papers 2000:3, Lund University, Department of Economics, revised 16 Apr 2001. [Downloadable!]
  6. Adam Copeland & Wendy Dunn & George Hall, 2005. "Prices, Production and Inventories over the Automotive Model Year," NBER Working Papers 11257, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Steven Raphael & David A. Riker, 1998. "Geographic Mobility, Race, and Wage Differentials," University of California at San Diego, Economics Working Paper Series 97-05r, Department of Economics, UC San Diego. [Downloadable!]
  8. Fiona Scott Morton & Florian Zettelmeyer & Jorge Silva Risso, 2000. "Internet Car Retailing," NBER Working Papers 7961, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Heather Antecol & Deborah A. Cobb-Clark, 2006. "Racial and Ethnic Discrimination in Local Consumer Markets: Exploiting the Army’s Procedures for Matching Personnel to Duty Locations," IZA Discussion Papers 2389, Institute for the Study of Labor (IZA). [Downloadable!]
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  10. William T. Harbaugh & Kate Krause & Steven G. Liday, 2002. "Bargaining by Children," University of Oregon Economics Department Working Papers 2002-04, University of Oregon Economics Department, revised 20 Jul 2002. [Downloadable!]
  11. Stephen L. Ross, 2003. "What Is Known about Testing for Discrimination: Lessons Learned by Comparing across Different Markets," Working papers 2003-21, University of Connecticut, Department of Economics, revised Nov 2003. [Downloadable!]
  12. Wendy Edelberg, 2007. "Racial dispersion in consumer credit interest rates," Finance and Economics Discussion Series 2007-28, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  13. Shelly Lundberg & Richard Startz, 1998. "Inequality and Race: Models and Policy," Discussion Papers in Economics at the University of Washington 0067, Department of Economics at the University of Washington. [Downloadable!]
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  14. David S. Salkever & Marisa E. Domino, 1997. "Within Group "Structural" Tests of Labor-Market Discrimination: A Study of Persons with Serious Disabilities," NBER Working Papers 5931, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. David L. Dickinson & Ronald L. Oaxaca, 2006. "Statistical Discrimination in Labor Markets: An Experimental Analysis," IZA Discussion Papers 2305, Institute for the Study of Labor (IZA). [Downloadable!]
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  16. Manuel F. Bagues & Maria Jose Perez Villadoniga, 2008. "Why do I like people like me?," Business Economics Working Papers wb080601, Universidad Carlos III, Departamento de Economía de la Empresa. [Downloadable!]
  17. Manuel F. Bagüés & Berta Esteve-Volart, 2007. "Can gender parity break the glass ceiling? Evidence from a repeated randomized experiment," Working Papers 2007-15, FEDEA. [Downloadable!]
  18. Harold A. Black & Thomas P. Boehm & Ramon P. DeGennaro, 2001. "Is there discrimination in mortgage pricing? the case of overages," Working Paper 2001-4, Federal Reserve Bank of Atlanta. [Downloadable!]
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  19. Matthias Sutter & Ronald Bosman & Martin Kocher & Frans van Winden, 2003. "Experimental evidence of the importance of gender pairing in bargaining," Discussion Papers on Strategic Interaction 2003-27, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
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  20. Meghan Busse & Florian Zettelmeyer & Jorge Silva-Risso, 2004. "$1000 Cash Back: Asymmetric Information in Auto Manufaturer Promotions," NBER Working Papers 10887, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  21. Fershtman, Chaim & Gneezy, Uri & Verboven, Frank, 2002. "Discrimination and Nepotism: The Efficiency of the Anonymity Rule," CEPR Discussion Papers 3175, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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