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Nepotism, Discrimination, and the Persistence of Utility‐Maximizing, Owner‐Operated Firms: Comment

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  • Shmuel Sharir

Abstract

A recent thoughtful paper by Singell and Thornton (thereafter ST) in the Southern Economic Journal deviates in definitions, modeling, and a result from the traditional literature on tastes for discrimination and nepotism that originates with Becker and Arrow. This comment provides a critique of these three aspects of the ST analysis. In particular, it shows that ST's astonishing result that discrimination will persist in a competitive labor market is unjustified, ST's unconventional definitions of owners with unbiased and biased preferences are wrong, and ST's unique modeling of discrimination and nepotism is unsupported.

Suggested Citation

  • Shmuel Sharir, 1999. "Nepotism, Discrimination, and the Persistence of Utility‐Maximizing, Owner‐Operated Firms: Comment," Southern Economic Journal, John Wiley & Sons, vol. 65(4), pages 953-958, April.
    • Handle: RePEc:wly:soecon:v:65:y:1999:i:4:p:953-958
    DOI: 10.1002/j.2325-8012.1999.tb00211.x
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    References listed on IDEAS

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    1. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
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