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Experience-Based Discrimination: Classroom Games

Author

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  • Roland G. Fryer
  • Jacob K. Goeree
  • Charles A. Holt

Abstract

The authors present a simple classroom game in which students are randomly designated as employers, purple workers, or green workers. This environment may generate "statistical" discrimination if workers of one color tend not to invest because they anticipate lower opportunities in the labor market, and these beliefs are self-confirming as employers learn that it is, on average, less profitable to hire workers of that color. Such discriminatory equilibria may arise even when workers are ex-ante identical, and the employer has no prior information regarding potential workers. The exercise typically generates a lively discussion about discrimination and how it may be addressed by alternative public policies.

Suggested Citation

  • Roland G. Fryer & Jacob K. Goeree & Charles A. Holt, 2005. "Experience-Based Discrimination: Classroom Games," The Journal of Economic Education, Taylor & Francis Journals, vol. 36(2), pages 160-170, April.
  • Handle: RePEc:taf:jeduce:v:36:y:2005:i:2:p:160-170 DOI: 10.3200/JECE.36.2.160-170
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    References listed on IDEAS

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    1. Jacob K. Goeree & Charles A. Holt, 1999. "Employment and Prices in a Simple Macroeconomy," Southern Economic Journal, Southern Economic Association, vol. 65(3), pages 637-647, January.
    2. Joseph Santos, 2002. "Developing and Implementing an Internet-Based Financial System Simulation Game," The Journal of Economic Education, Taylor & Francis Journals, vol. 33(1), pages 31-40, January.
    3. Michael H. Truscott & Hemant Rustogi & Corinne B. Young, 2000. "Enhancing the Macroeconomics Course: An Experiential Learning Approach," The Journal of Economic Education, Taylor & Francis Journals, vol. 31(1), pages 60-65, December.
    4. Hans Gremmen & Jan Potters, 1997. "Assessing the Efficacy of Gaming in Economic Education," The Journal of Economic Education, Taylor & Francis Journals, pages 291-303.
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    Citations

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    Cited by:

    1. Wayne Geerling, 2012. "Bringing the 'Dismal Science' to Life: Teaching Economics Through Multimedia," International Review of Economic Education, Economics Network, University of Bristol, pages 81-90.
    2. David Masclet & Emmanuel Peterle & Sophie Larribeau, 2012. "The Role of Information in Deterring Discrimination: A New Experimental Evidence of Statistical Discrimination," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201238, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    3. Charness, Gary & Kuhn, Peter, 2011. "Lab Labor: What Can Labor Economists Learn from the Lab?," Handbook of Labor Economics, Elsevier.
    4. Antonio FILIPPIN & Francesco GUALA, 2011. "Costless discrimination and unequal achievements in a labour market experiment," Departmental Working Papers 2011-30, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    5. Antonio Filippin & Francesco Guala, 2013. "Costless discrimination and unequal achievements in an experimental tournament," Experimental Economics, Springer;Economic Science Association, vol. 16(3), pages 285-305, September.
    6. Dickinson, David L. & Masclet, David & Peterle, Emmanuel, 2017. "Discrimination as Favoritism: The Private Benefits and Social Costs of In-group Favoritism in an Experimental Labor Market," IZA Discussion Papers 10599, Institute for the Study of Labor (IZA).
    7. Kevin Lang & Jee-Yeon K. Lehmann, 2012. "Racial Discrimination in the Labor Market: Theory and Empirics," Journal of Economic Literature, American Economic Association, pages 959-1006.
    8. Magnus Rodin & Gulay Ozcan, 2013. "Is It How You Look or Speak That Matters? “An Experimental Study Exploring the Mechanisms of Ethnic Discrimination”," Working Papers 009, Bahcesehir University, Betam.
    9. Schuster, Stephan, 2012. "Applications in Agent-Based Computational Economics," MPRA Paper 47201, University Library of Munich, Germany.

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