IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/19514.html

Discrimination and Preference Primitives

Author

Listed:
  • Bazley, William
  • Cuculiza, Carina
  • Korniotis, George

Abstract

We examine the impact of perceived social discrimination on U.S. households' preferences, focusing on key aspects of prospect theory. Utilizing both field and experimental data, we find that perceiving discrimination increases risk tolerance, decreases loss aversion, and excessively distorts objective probabilities. These effects are primarily observed in racial/ethnic minorities, with no significant impact on White individuals. Emotional mechanisms, particularly anger, play a role in transmitting the effects of discrimination on preferences. Overall, our findings underscore how social factors, such as discrimination, can systematically shape fundamental preferences, and ultimately influencing economic decision-making.

Suggested Citation

  • Bazley, William & Cuculiza, Carina & Korniotis, George, 2024. "Discrimination and Preference Primitives," CEPR Discussion Papers 19514, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:19514
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP19514
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G50 - Financial Economics - - Household Finance - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:19514. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CEPR (email available below). General contact details of provider: https://cepr.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.