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Free-riding and cost-bearing in discrimination

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  • Li, Xilin
  • Hsee, Christopher K.

Abstract

We study how the temporal positions in which a disadvantaged person (e.g., an unattractive-looking customer) and an advantaged person (e.g., an attractive-looking customer) encounter an actor (e.g., a vendor) influence the treatment they get from the actor (e.g., the prices the vendor offers). Three experiments, including a field experiment and a pre-registered experiment, incorporate three types of personal attributes (physical appearance, nationality, and gender) and find both a free-riding effect for the disadvantaged person and a cost-bearing effect for the advantaged person. Specifically, the disadvantaged person receives better treatment by following the advantaged person, and the advantaged person receives worse treatment by following the disadvantaged person. These effects occur only if the attribute that differentiates the disadvantaged and advantaged persons is perceived as unjustifiable, and they disappear if the attribute is perceived as justifiable, suggesting that these effects are due not to anchoring, but to the actor’s need for justifiability. This research highlights the importance of choice architecture in discrimination and its prevention.

Suggested Citation

  • Li, Xilin & Hsee, Christopher K., 2021. "Free-riding and cost-bearing in discrimination," Organizational Behavior and Human Decision Processes, Elsevier, vol. 163(C), pages 80-90.
    • Handle: RePEc:eee:jobhdp:v:163:y:2021:i:c:p:80-90
    DOI: 10.1016/j.obhdp.2019.08.003
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    References listed on IDEAS

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