The visible hand: Race and online market outcomes

Jennifer L. Doleac, Luke Stein

Research output: Contribution to journalArticle

70 Citations (Scopus)

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)
JournalEconomic Journal
Volume123
Issue number572
DOIs
StatePublished - Nov 2013

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Online markets
Seller
Isolation
Crime
Statistical discrimination
Buyers
Thin markets
Discrimination

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

The visible hand : Race and online market outcomes. / Doleac, Jennifer L.; Stein, Luke.

In: Economic Journal, Vol. 123, No. 572, 11.2013.

Research output: Contribution to journalArticle

Doleac, Jennifer L. ; Stein, Luke. / The visible hand : Race and online market outcomes. In: Economic Journal. 2013 ; Vol. 123, No. 572.
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