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Shopping While Female: Who Pays Higher Prices and Why?

Author

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  • Anne Fitzpatrick

Abstract

I estimate gender price discrimination in the Ugandan antimalarial drug market with an audit study. To determine whether results are consistent with statistical or taste-based discrimination, I contrast gender results with results by ethnicity (tribe). Vendors initially offer women prices that are $0.12 (3 percent) higher. However, women are 16 percentage points more likely to successfully bargain for a discount, resulting in no differential in price paid. Results are stronger among majority-tribe females. I find no differences in drug quality. Both women and minorities report better service quality. Offer price differentials suggest statistical discrimination; there is no differential for prices paid.

Suggested Citation

  • Anne Fitzpatrick, 2017. "Shopping While Female: Who Pays Higher Prices and Why?," American Economic Review, American Economic Association, vol. 107(5), pages 146-149, May.
    • Handle: RePEc:aea:aecrev:v:107:y:2017:i:5:p:146-49
    Note: DOI: 10.1257/aer.p20171127
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    Citations

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    Cited by:

    1. Fitzpatrick, Anne, 2023. "Which price is right? A comparison of three standard approaches to measuring prices," Journal of Development Economics, Elsevier, vol. 163(C).
    2. Bello, Piera, 2023. "Gender-based price discrimination in the annuity market: Evidence from Chile," European Economic Review, Elsevier, vol. 151(C).
    3. Piera Bello, 2020. "Gender-based price discrimination in the annuity market: Evidence from Chile," IdEP Economic Papers 2002, USI Università della Svizzera italiana.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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