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The Cost of Work Discrimination: A Market Capture Differential Game Model

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  • Mario Alberto García-Meza

    (Faculty of Economics, Accounting and Management (FECA), Universidad Juárez del Estado de Durango, Durango 34000, Mexico)

Abstract

Discrimination in the workplace can be a source of opportunity costs for firms that desire to enter a new market. In this article, we model how an exogenous technological change introduces both new potential workers in the labor market and, as the economy grows, a new set of consumers for firms to conquer. We then use a differential model to show how the payoff of a firm that discriminates in the labor market loses potential market from this same demographic. Our results imply that anti-discriminatory policies within the firm constitute an important element for the solution of this problem, and that there might be incentives for the firms to apply such policies.

Suggested Citation

  • Mario Alberto García-Meza, 2021. "The Cost of Work Discrimination: A Market Capture Differential Game Model," Mathematics, MDPI, vol. 9(19), pages 1-10, September.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:19:p:2419-:d:645726
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    References listed on IDEAS

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