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Race effects on ebay

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Race effects on ebay

Race Effects on eBayIan Ayres. Mahzarin Banaji. and Christine Jolls1Abstract. We investigate the impact of seller race in a field experiment involving

Race effects on ebayg baseball card auctions on eBay. Photographs showed the cards held by either a dark-skinned African-American hand or a light-skinnedCaucasian hand. C

ards held by African-American sellers sold for approximately 20°o ($0.90) less than cards held by Caucasian sellers, and the race effect was more pron Race effects on ebay

ounced in sales of minority player cards. Our evidence of race differentials is important because the on-line environment is well controlled (with the

Race effects on ebay

absence of confounding tester effects) and because the results show that race effects can persist in a thick real-world market such as eBay.JEL class

Race Effects on eBayIan Ayres. Mahzarin Banaji. and Christine Jolls1Abstract. We investigate the impact of seller race in a field experiment involving

Race effects on ebayebuff. Nicola Persico. Jeremy Tobacman. and workshop participants at Cornell University, Duke University, Harvard Business School, the Wharton School

at the University of Pennsylvania. Yale University, the NBER Summer Institute, and the American Law and Economics Association Annual Meeting for extre Race effects on ebay

mely helpful comments: Isra Bhatty. Daniel Klaff. Dina Mishra, Eli Schachar. and Ileidee Stoller for superb research assistance: and Ian Masias and Ja

Race effects on ebay

mes Richardson for excellent dataset assistance.' Ayres and -Tolls: Yale Law School and NBER. ian.ayres@yale.edu and christine.jolls@yale.edu. Banaji:

Race Effects on eBayIan Ayres. Mahzarin Banaji. and Christine Jolls1Abstract. We investigate the impact of seller race in a field experiment involving

Race effects on ebayther internet auctions has given significant emphasis to field experiments (for example. Jin and Kato 2004: Reiley 2006: Resnick. Zeckhauser. Swanson,

and Lockwood 2006). and field experiments have likewise been prominent ill contemporary' studies of race discrimination (for example. Bertrand and Mu Race effects on ebay

llainatlran 2004: List 2004). The present study arises at the intersection of these two literatures. We conduct a field experiment on the effects of s

Race effects on ebay

eller race on eBay, the leading internet auction site. In OIU experiment, either a dark-skinned African-American hand or a light-skinned Caucasian han

Race Effects on eBayIan Ayres. Mahzarin Banaji. and Christine Jolls1Abstract. We investigate the impact of seller race in a field experiment involving

Race effects on ebayders have no access to the types of seller information - such as demeanor and socioeconomic background -that are usually observable in field experimen

ts examining the effects of race on economic behavior Our study design also benefits greatly from the large existing literature on internet auctions ( Race effects on ebay

for example. Melnik and Ahn 2002; Bajari and Hortacsu 2003: Bolton. Katok. and Ockenfels 2004. Jin and Kato 2006: Reiley 2006; Lucking-Reiley. Bryan.

Race effects on ebay

Prasad, and Reeves 2007; and Cabral and Hortacsu 2010).In the typical setting (for example. Ayres and Siegehnan 1995). it is hard to rule out entirely

Race Effects on eBayIan Ayres. Mahzarin Banaji. and Christine Jolls1Abstract. We investigate the impact of seller race in a field experiment involving

Race effects on ebayifferent races. Even in a tester study in which racialized names rather than live individuals are used - as in the renowned resume study of Bertrand a

nd MuIIainathan (2004) - it has proven to be difficult to disentangle race and other factors. While Bertrand and Mullainathan. as well as Nunley. Owen Race effects on ebay

s, and1Howard (2010). use an individual's fust name to signal race (for instance. “Emily” versus “Lakisha"). a potential confounding factor, as Bertra

Race effects on ebay

nd and Mullainathan discuss at some length, is that “common” African-American names may be common not among African-Americans 111 general but among pa

Race Effects on eBayIan Ayres. Mahzarin Banaji. and Christine Jolls1Abstract. We investigate the impact of seller race in a field experiment involving

Race effects on ebayfect of race or the effect of low socioeconomic status (or the effect of race coupled with low socioeconomic status) (see Flyer and Levitt 2004). " Ou

r eBay study, by varying racial appearance 111 an internet auction in which there is simply no behavior, demeanor, or other features (apart from racia Race effects on ebay

l appearance) to distinguish one sale from another, seeks to isolate the role of race to the greatest degree possible.Section I sets the stage for our

Race effects on ebay

empirical analysis by outlining how. in theory, race-based evaluations of auction items offered by African-American versus Caucasian sellers could af

Race Effects on eBayIan Ayres. Mahzarin Banaji. and Christine Jolls1Abstract. We investigate the impact of seller race in a field experiment involving

Race effects on ebayrnet auctions have not examined potential differential treatment by racial appearance.2 the design of our study nonetheless benefitted greatly from th

e large existing literature on eBay and other internet auctions, as described inWhile Bertrand and Mullainathan present considerable evidence that ind Race effects on ebay

ividual names that are correlated with lower actual socioeconomic status do not generate lower interview callback rates, they also find that on averag

Race effects on ebay

e the black names 111 then sample are correlated with lower socioeconomic status than rhe white names, and this average may be reflected in employer p

Race Effects on eBayIan Ayres. Mahzarin Banaji. and Christine Jolls1Abstract. We investigate the impact of seller race in a field experiment involving

Race effects on ebayrticular name but on the basis of a generalized perception about types of names.* The Nunley. Owens and Howard study noted above, in parallel to the B

ertrand and Mullainathan study, examined potential differential treatment by racialized names on the internet, finding some evidence of an effect of t Race effects on ebay

raditionally African-American names 111 markets with few sellers participating, but not in markets with more sellers. The difference between race (in

Race effects on ebay

the sense of racial appearance) and racialized naming has already been noted.2detail Hl Section II. Section III presents our empirical results, and Se

Race Effects on eBayIan Ayres. Mahzarin Banaji. and Christine Jolls1Abstract. We investigate the impact of seller race in a field experiment involving

Race effects on ebay recent papers examining race effects in non-anction on-line environments (for example. Pope and Sydnor 2011: Ravina 2008: Doleac and Stem 2010). Dole

ac and Stem’s study is closest to this one; they test for race effects in advertising iPod Nanos held by either African-American or Caucasian sellers Race effects on ebay

on Craigslist HI 300 different local geographical markets. Most of these markets are quite small (the median number of advertisements for iPod Nanos o

Race effects on ebay

ffered for sale in then local market 111 a week prior to one of tlieừ advertisements was three), and transaction pl ices are privately negotiated via

Race Effects on eBayIan Ayres. Mahzarin Banaji. and Christine Jolls1Abstract. We investigate the impact of seller race in a field experiment involving

Race effects on ebayred for sale at any one time, and transaction prices are set through the internet auction mechanism with no personal interaction and worldwide partici

pation. Doleac and Stem's study and our own thus provide complementary tests of the effects of racial appearance in thicker national markets with more Race effects on ebay

transparent transaction pricing (eBay) versus thinner. local markets with privately negotiated pricing (Craigslist). While the auction and non-auctio

Race effects on ebay

n environments differ in various ways, both Doleac and Stein and we find that race differences arise in some circumstances.I. Race in AuctionsA thresh

Race Effects on eBayIan Ayres. Mahzarin Banaji. and Christine Jolls1Abstract. We investigate the impact of seller race in a field experiment involving

Race effects on ebayely to differ across individuals who bid in eBay auctions, it is important to consider how such heterogeneity will3impact the auction process. (By con

trast. List (2004) studied the effects of seller race in in-person sportscald sales that did not involve auctioning cards to multiple bidders.) As Bec Race effects on ebay

ker’s (1957) seminal work emphasized, the operation of markets may mean that economic outcomes such as wages and prices are not affected by racial bia

Race effects on ebay

s cv err if some market participants arc racially biased.hr a common-value auction, buyers' valuations arc hr part a product of buyers' estimation of

Race Effects on eBayIan Ayres. Mahzarin Banaji. and Christine Jolls1Abstract. We investigate the impact of seller race in a field experiment involving

Race effects on ebayavior generally will be impacted by racial bias among other potential buyers even if the first buyer personally harbors no racial bias. Such bras amon

g some bidders will depress brds. winch in Unit will pull down even brds by individuals who do nor themselves harbor direct racial bias.Consider now t Race effects on ebay

he case of a private-value auction. In such an auction, buyers’ valuations are not a product of other buyers’ valuations, and. thus, bidding one's own

Race effects on ebay

valuation in a second-price. secret-bld auction IS a dominant strategy. However. eBay is not a secret-bld auction (though it is a second-price auctio

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