The visible hand: Race and online market outcomes

Jennifer L. Doleac, Luke Stein

Research output: Contribution to journalArticlepeer-review

93 Scopus citations

Abstract

We examine the effect of race on market outcomes by selling iPods through local online classified advertisements throughout the US. Each advertisement features a photograph including a dark or light-skinned hand, or one with a wrist tattoo. Black sellers receive fewer and lower offers than white sellers, and the correspondence with black sellers indicates lower levels of trust. Black sellers' outcomes are particularly poor in thin markets (suggesting that discrimination may not 'survive' competition among buyers) and those with the most racial isolation and property crime (consistent with channels through which statistical discrimination might operate).

Original languageEnglish (US)
Pages (from-to)F469-F492
JournalEconomic Journal
Volume123
Issue number572
DOIs
StatePublished - Nov 2013

ASJC Scopus subject areas

  • Economics and Econometrics

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