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Customer discrimination in professional basketball: evidence from the trading-card market

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Author Info

  • Eric Stone
  • Ronald Warren

Abstract

This paper presents evidence on the existence of customer racial discrimination in professional basketball from recent prices for the trading cards of former players in the National Basketball Association. Data were collected on the 258 active roster players in the NBA during the 1976-77 season, 133 of whom had cards issued that year. Maximum-likelihood estimation of a card-price equation is carried out, accounting both for the nonrandom selection of the players for whom cards exist and for left-censoring of the dependent variable. Overall, the empirical results suggest the absence of customer racial discrimination in the pricing of basketball trading cards. However, there is some evidence that the effect of career length on trading-card prices is lower for whites than for blacks, and that the card-price premium for players who subsequently coached in the NBA is lower for blacks than for whites.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323896
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 31 (1999)
Issue (Month): 6 ()
Pages: 679-685

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Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:679-685

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Cited by:
  1. Klaassen, F.J.G.M. & Magnus, J.R., 2006. "Are Economic Agents Successful Optimizers? An Analysis Through Strategy in Tennis," Discussion Paper 2006-52, Tilburg University, Center for Economic Research.
  2. Klaassen, Franc J.G.M. & Magnus, Jan R., 2009. "The efficiency of top agents: An analysis through service strategy in tennis," Journal of Econometrics, Elsevier, vol. 148(1), pages 72-85, January.
  3. Kahn, Lawrence M., 2009. "The Economics of Discrimination: Evidence from Basketball," IZA Discussion Papers 3987, Institute for the Study of Labor (IZA).
  4. Depken II, Craig A. & Ford, Jon M., 2006. "Customer-based discrimination against major league baseball players: Additional evidence from All-star ballots," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(6), pages 1061-1077, December.
  5. Olugbenga Ajilore, 2014. "Do white NBA players suffer from reverse discrimination?," Economics Bulletin, AccessEcon, vol. 34(1), pages 558-566.
  6. Matthew Parrett, 2011. "Customer Discrimination in Restaurants: Dining Frequency Matters," Journal of Labor Research, Springer, vol. 32(2), pages 87-112, June.
  7. Caitlin Knowles Myers, 2005. "Discrimination as a Competitive Device: The Case of Local Television News," Middlebury College Working Paper Series 0526, Middlebury College, Department of Economics.

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