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Discriminations in the market for “Lemons”: A multicriteria correspondence test in France

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  • Mbaye, Souleymane
  • Bunel, Mathieu
  • L'Horty, Yannick
  • Petit, Pascale
  • Parquet, Loïc du

Abstract

The existence of discrimination by the sellers of second-hand cars is a little studied subject, whereas the possibility of acquiring a car conditions multiple aspects of economic and social life. In this article, we apply the correspondence test method to the purchase of a used car in order to measure the extent of discrimination in this market according to the ethnic origin, gender, place of residence and age of the applicant. We constructed six profiles of fictitious individuals, perfectly similar except for their age, gender, origin indicated by the consonance of their surname and first name or place of residence. Between January and May 2015, we used these fictitious profiles to respond to 489 used car sales ads located in Ile-de- France. Statistical analysis of the responses to these tests reveals the existence of discrimination according to gender and place of residence. The analysis shows that information based discrimination prevails on the second-hand car market rather than taste based discriminations.

Suggested Citation

  • Mbaye, Souleymane & Bunel, Mathieu & L'Horty, Yannick & Petit, Pascale & Parquet, Loïc du, 2020. "Discriminations in the market for “Lemons”: A multicriteria correspondence test in France," Economics of Transportation, Elsevier, vol. 24(C).
    • Handle: RePEc:eee:ecotra:v:24:y:2020:i:c:s2212012220301283
    DOI: 10.1016/j.ecotra.2020.100192
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    More about this item

    Keywords

    Discrimination; Testing; Mobility; Used cars;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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