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Seller-Buyer Ethnic Matches: The Case Of Car Transactions At Two North American Auto Dealerships

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  • OWAN, HIDEO
  • TSURU, TSUYOSHI
  • UEHARA, KATSUHITO
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    Abstract

    Using personnel and transaction data obtained from two Canadian auto dealerships, we examine whether ethnic matches between salespersons and customers affectsales prices and the number of units sold by individual salespersons. Regarding prices, we detect neither premium price setting nor discounting among seller-buyer matches of the same ethnic groups relative to those of different ethnic groups. Regarding the number of units sold by individual salespersons, however, we find that, relative to customer demographics, salespersons sell larger quantities to customers of the same ethnic group. Moreover, we find that high-performing salespersons conduct more transactions with customers of the same ethnic group than low-performers, especially in months when business conditions are unfavorable.

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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/25384/1/HJeco0530221700.pdf
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    Bibliographic Info

    Article provided by Hitotsubashi University in its journal Hitotsubashi Journal of Economics.

    Volume (Year): 53 (2012)
    Issue (Month): 2 (December)
    Pages: 217-236

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    Handle: RePEc:hit:hitjec:v:53:y:2012:i:2:p:217-236

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    Related research

    Keywords: ethnicity; price discrimination; seller-buyer matches; car transaction; social network;

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    1. H. J. Holzer & K. R. Ihlanfeldt, . "Customer Discrimination and Employment Outcomes for Minority Workers," Institute for Research on Poverty Discussion Papers 1122-97, University of Wisconsin Institute for Research on Poverty.
    2. Laura Giuliano & David I. Levine & Jonathon Leonard, 2006. "Manager Race and the Race of New Hires," Working Papers 0722, University of Miami, Department of Economics.
    3. John List, 2004. "The nature and extent of discrimination in the marketplace: Evidence from the field," Natural Field Experiments 00299, The Field Experiments Website.
    4. Jennifer L. Doleac & Luke C.D. Stein, 2013. "The Visible Hand: Race and Online Market Outcomes," Economic Journal, Royal Economic Society, vol. 123(11), pages F469-F492, November.
    5. Goldberg, Pinelopi Koujianou, 1996. "Dealer Price Discrimination in New Car Purchases: Evidence from the Consumer Expenditure Survey," Journal of Political Economy, University of Chicago Press, vol. 104(3), pages 622-54, June.
    6. Ayres, Ian & Siegelman, Peter, 1995. "Race and Gender Discrimination in Bargaining for a New Car," American Economic Review, American Economic Association, vol. 85(3), pages 304-21, June.
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