Discrimination as a Competitive Device: The Case of Local Television News
Local news offers a unique look not only at customer preferences but also at the strategic response of firms to these preferences. This paper uses a combination of ratings data and newly gathered information on television stations in 25 U.S. markets to examine the decisions of competing firms and how customers respond to the journalists who appear on-air at the different stations in a market. The results indicate that there is a negative correlation between the racial, gender, and age composition of competing firms. Moreover, the ratings data suggest that the stations with relatively few blacks on-air are catering to the more discriminatory customers. While a similar result is found for age and gender, the reverse holds for other groups, suggesting possible tastes for diversity for Hispanics and Asians. Taken as a whole, the evidence supports a theoretical model in which firms differentiate via the characteristics of their employees in response to customer prejudice.
|Date of creation:||Oct 2005|
|Date of revision:|
|Publication status:||published in: B.E. Journal of Economic Analysis and Policy: Contributions to Economic Analysis and Policy, 2008, 8(1)|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gwartney, James & Haworth, Charles, 1974. "Employer Costs and Discrimination: The Case of Baseball," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 873-81, July/Aug..
- Kanazawa, Mark T & Funk, Jonas P, 2001. "Racial Discrimination in Professional Basketball: Evidence from Nielsen Ratings," Economic Inquiry, Western Economic Association International, vol. 39(4), pages 599-608, October.
- Kate Antonovics & Brian G. Knight, 2009.
"A New Look at Racial Profiling: Evidence from the Boston Police Department,"
The Review of Economics and Statistics,
MIT Press, vol. 91(1), pages 163-177, February.
- Kate L. Antonovics & Brian G. Knight, 2004. "A New Look at Racial Profiling: Evidence from the Boston Police Department," NBER Working Papers 10634, National Bureau of Economic Research, Inc.
- Eric Stone & Ronald Warren, 1999. "Customer discrimination in professional basketball: evidence from the trading-card market," Applied Economics, Taylor & Francis Journals, vol. 31(6), pages 679-685.
- Paul M. Sommers & Noel Quinton, 1982. "Pay and Performance in Major League Baseball: The Case of the First Family of Free Agents," Journal of Human Resources, University of Wisconsin Press, vol. 17(3), pages 426-436.
- Aldrich Eric M & Arcidiacono Peter S. & Vigdor Jacob L, 2005. "Do People Value Racial Diversity? Evidence from Nielsen Ratings," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-24, February.
- H. J. Holzer & K. R. Ihlanfeldt, .
"Customer Discrimination and Employment Outcomes for Minority Workers,"
Institute for Research on Poverty Discussion Papers
1122-97, University of Wisconsin Institute for Research on Poverty.
- Harry J. Holzer & Keith R. Ihlanfeldt, 1998. "Customer Discrimination and Employment Outcomes for Minority Workers," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 835-867.
- Kahn, Lawrence M & Sherer, Peter D, 1988. "Racial Differences in Professional Basketball Players' Compensation," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 40-61, January.
- Clark Nardinelli & Curtis Simon, 1990. "Customer Racial Discrimination in the Market for Memorabilia: The Case of Baseball," The Quarterly Journal of Economics, Oxford University Press, vol. 105(3), pages 575-595.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp1802. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.