2007-02-23 13:59:46 · 4 answers · asked by angel_rat_83 1 in Social Science ➔ Economics
Discrimination could be a result of prejudice of customers or other workers. They have no profit incentive to correct their behavior. Sports fans are less interested in products endorse by black athletes. Male employees may exclude women from full participation in joint projects making them less productive.
2007-02-23 16:35:50 · answer #1 · answered by meg 7 · 0⤊ 0⤋
One example can be the case of gender discrimination in the labor market. In a competitive market labor is paid its marginal productivity. Given that women usually bring to the market lower levels of human capital or because they do not work the complete shift, women have a lower marginal productivity. So, you can see a persistent lower wage for women and gender discrimination even if the market is competitive. The lower productivity of women can be real or result from a perception.
2007-02-23 22:28:20 · answer #2 · answered by Sandrilucas 1 · 0⤊ 0⤋
Price discrimination happens in a competitive market also. Good examples to this are coupons, and grocery store preferred cards. These tactics allow the seller to sell the same product at different prices to different customers. This is a way to segment the people that can afford higher prices without losing the people that you want coming back repeatedly. It works very well.
2007-02-23 23:02:49 · answer #3 · answered by K2 2 · 0⤊ 0⤋
Are you talking about competitive or perfectly competitive?
The degree of competition is important here I think.
If firms can discriminate, they are sure to have some kind of market power.
2007-02-24 07:47:35 · answer #4 · answered by newbie 1 · 0⤊ 0⤋