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Some Experimental Evidence on the Coate and Loury Model of Affirmative Action

Author

Listed:
  • Paul Carlin

    () (Department of Economics, Indiana Unviersity-Purdue University Indianapolis)

  • Michael Kidd
  • Jonathan Pot

Abstract

Coate and Loury (1993) suggest the impact of affirmative action on a negative stereotype is theoretically ambiguous leading to either: a benign equilibrium in which affirmative action eradicates the negative stereotype leading to equal proportional representation of the two groups; or alternatively a patronising equilibrium in which the stereotype persists. The current paper examines this theoretical ambiguity within the context of an experimental design. Although benign and patronising equilibria are equally plausible in theory, the experiments easily replicate the benign equilibrium, but find that a certainty effect leads to over-investment and divergence from the theoretically predicted patronising equilibrium.

Suggested Citation

  • Paul Carlin & Michael Kidd & Jonathan Pot, 2007. "Some Experimental Evidence on the Coate and Loury Model of Affirmative Action," Working Papers wp200701, Indiana University-Purdue University Indianapolis, Department of Economics.
  • Handle: RePEc:iup:wpaper:wp200701
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    File URL: http://www.iupui.edu/~econ/workingpapers/wp200701.pdf
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    Keywords

    Affirmative Action; Stereotype; Patronising Equilibrium;

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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