IDEAS home Printed from https://ideas.repec.org/a/spr/elmark/v32y2022i3d10.1007_s12525-021-00505-z.html
   My bibliography  Save this article

No matter what the name, we’re all the same? Examining ethnic online discrimination in ridesharing marketplaces

Author

Listed:
  • Olga Abramova

    (University of Potsdam)

Abstract

Sharing marketplaces emerged as the new Holy Grail of value creation by enabling exchanges between strangers. Identity reveal, encouraged by platforms, cuts both ways: While inducing pre-transaction confidence, it is suspected of backfiring on the information senders with its discriminative potential. This study employs a discrete choice experiment to explore the role of names as signifiers of discriminative peculiarities and the importance of accompanying cues in peer choices of a ridesharing offer. We quantify users’ preferences for quality signals in monetary terms and evidence comparative disadvantage of Middle Eastern descent male names for drivers and co-travelers. It translates into a lower willingness to accept and pay for an offer. Market simulations confirm the robustness of the findings. Further, we discover that females are choosier and include more signifiers of involuntary personal attributes in their decision-making. Price discounts and positive information only partly compensate for the initial disadvantage, and identity concealment is perceived negatively.

Suggested Citation

  • Olga Abramova, 2022. "No matter what the name, we’re all the same? Examining ethnic online discrimination in ridesharing marketplaces," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1419-1446, September.
  • Handle: RePEc:spr:elmark:v:32:y:2022:i:3:d:10.1007_s12525-021-00505-z
    DOI: 10.1007/s12525-021-00505-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12525-021-00505-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s12525-021-00505-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dongyu Chen & Xiaolin Li & Fujun Lai, 2017. "Gender discrimination in online peer-to-peer credit lending: evidence from a lending platform in China," Electronic Commerce Research, Springer, vol. 17(4), pages 553-583, December.
    2. Rishi Ahuja & Ronan C Lyons, 2019. "The silent treatment: discrimination against same-sex relations in the sharing economy," Oxford Economic Papers, Oxford University Press, vol. 71(3), pages 564-576.
    3. Ert, Eyal & Fleischer, Aliza & Magen, Nathan, 2016. "Trust and reputation in the sharing economy: The role of personal photos in Airbnb," Tourism Management, Elsevier, vol. 55(C), pages 62-73.
    4. Peter Younkin & Venkat Kuppuswamy, 2018. "The Colorblind Crowd? Founder Race and Performance in Crowdfunding," Management Science, INFORMS, vol. 64(7), pages 3269-3287, July.
    5. Lutz, Christoph & Newlands, Gemma, 2018. "Consumer segmentation within the sharing economy: The case of Airbnb," Journal of Business Research, Elsevier, vol. 88(C), pages 187-196.
    6. Asaf Zussman, 2013. "Ethnic Discrimination: Lessons from the Israeli Online Market for Used Cars," Economic Journal, Royal Economic Society, vol. 123(11), pages 433-468, November.
    7. Nunley, John M. & Owens, Mark F. & Howard, R. Stephen, 2011. "The effects of information and competition on racial discrimination: Evidence from a field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 670-679.
    8. Hadar Gafni & Dan Marom & Alicia Robb & Orly Sade, 2021. "Gender Dynamics in Crowdfunding (Kickstarter): Evidence on Entrepreneurs, Backers, and Taste-Based Discrimination [Women on the verge of a breakthrough: networking among entrepreneurs in the United," Review of Finance, European Finance Association, vol. 25(2), pages 235-274.
    9. Jennifer L. Doleac & Luke C.D. Stein, 2013. "The Visible Hand: Race and Online Market Outcomes," Economic Journal, Royal Economic Society, vol. 123(11), pages 469-492, November.
    10. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, December.
    11. Farajallah, Mehdi & Hammond, Robert G. & Pénard, Thierry, 2019. "What drives pricing behavior in Peer-to-Peer markets? Evidence from the carsharing platform BlaBlaCar," Information Economics and Policy, Elsevier, vol. 48(C), pages 15-31.
    12. Rose, John M. & Bliemer, Michiel C.J. & Hensher, David A. & Collins, Andrew T., 2008. "Designing efficient stated choice experiments in the presence of reference alternatives," Transportation Research Part B: Methodological, Elsevier, vol. 42(4), pages 395-406, May.
    13. Ian Ayres & Mahzarin Banaji & Christine Jolls, 2015. "Race effects on eBay," RAND Journal of Economics, RAND Corporation, vol. 46(4), pages 891-917, October.
    14. repec:fth:prinin:*30a is not listed on IDEAS
    15. Ivaldi, Marc & Palikot, Emil, 2020. "Sharing when stranger equals danger: Ridesharing during Covid-19 pandemic," CEPR Discussion Papers 15202, C.E.P.R. Discussion Papers.
    16. Kenneth Arrow, 1971. "The Theory of Discrimination," Working Papers 403, Princeton University, Department of Economics, Industrial Relations Section..
    17. repec:pri:indrel:dsp014t64gn18f is not listed on IDEAS
    18. Benlian, Alexander & Hess, Thomas, 2011. "The Signaling Role of IT Features in Influencing Trust and Participation in Online Communities," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 58026, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    19. Kakar, Venoo & Voelz, Joel & Wu, Julia & Franco, Julisa, 2018. "The Visible Host: Does race guide Airbnb rental rates in San Francisco?," Journal of Housing Economics, Elsevier, vol. 40(C), pages 25-40.
    20. Benjamin Edelman & Michael Luca & Dan Svirsky, 2017. "Racial Discrimination in the Sharing Economy: Evidence from a Field Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 9(2), pages 1-22, April.
    21. Kenneth J. Arrow, 1998. "What Has Economics to Say about Racial Discrimination?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 91-100, Spring.
    22. Tjaden, Jasper Dag & Schwemmer, Carsten & Khadjavi, Menusch, 2018. "Ride with Me - Ethnic Discrimination, Social Markets and the Sharing Economy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 34(4), pages 418-432.
    23. Juliet B. Schor, 2017. "Does the sharing economy increase inequality within the eighty percent?: findings from a qualitative study of platform providers," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(2), pages 263-279.
    24. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    25. Abramova, Olga & Krasnova, Hanna & Tan, Chee-Wee, 2017. "How Much Will You Pay? Understanding the Value of Information Cues in the Sharing Economy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 87715, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    26. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    27. Ge, Yanbo & Knittel, Christopher R. & MacKenzie, Don & Zoepf, Stephen, 2020. "Racial discrimination in transportation network companies," Journal of Public Economics, Elsevier, vol. 190(C).
    28. repec:fth:prinin:30a is not listed on IDEAS
    29. Palan, Stefan & Schitter, Christian, 2018. "Prolific.ac—A subject pool for online experiments," Journal of Behavioral and Experimental Finance, Elsevier, vol. 17(C), pages 22-27.
    30. Emma von Essen & Jonas Karlsson, 2019. "The effect of competition on discrimination in online markets—Anonymity and selection," PLOS ONE, Public Library of Science, vol. 14(8), pages 1-18, August.
    31. Jorge Mejia & Chris Parker, 2021. "When Transparency Fails: Bias and Financial Incentives in Ridesharing Platforms," Management Science, INFORMS, vol. 67(1), pages 166-184, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rainer Alt, 2022. "Electronic Markets on platform culture," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1019-1031, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tjaden, Jasper Dag & Schwemmer, Carsten & Khadjavi, Menusch, 2018. "Ride with Me - Ethnic Discrimination, Social Markets and the Sharing Economy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 34(4), pages 418-432.
    2. Tjaden, Jasper Dag & Schwemmer, Carsten & Khadjavi, Menusch, 2017. "Ride with me: Ethnic discrimination in social markets," Kiel Working Papers 2087, Kiel Institute for the World Economy (IfW Kiel).
    3. Siddique, Abu & Vlassopoulos, Michael & Zenou, Yves, 2023. "Market competition and discrimination," European Economic Review, Elsevier, vol. 152(C).
    4. Sander WAGNER & Ivaylo D. PETEV, 2019. "The Economic Penalty of Terrorism: Increase in Discrimination Against Arabs and Muslims after Paris Attacks," Working Papers 2019-22, Center for Research in Economics and Statistics.
    5. Doerrenberg, Philipp & Duncan, Denvil & Li, Danyang, 2024. "The (in)visible hand: Do workers discriminate against employers?," Journal of Public Economics, Elsevier, vol. 231(C).
    6. Priyanga Gunarathne & Huaxia Rui & Abraham Seidmann, 2022. "Racial Bias in Customer Service: Evidence from Twitter," Information Systems Research, INFORMS, vol. 33(1), pages 43-54, March.
    7. Simonovits, Gábor & Simonovits, Bori, 2022. "Csökkenthető-e a diszkrimináció a megosztáson alapuló gazdaságban? Egy magyarországi telekocsioldalon végzett kísérleti kutatás eredményei [Can discrimination be decreased in the new platform econo," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1457-1474.
    8. Dolnicar, Sara, 2019. "A review of research into paid online peer-to-peer accommodation," Annals of Tourism Research, Elsevier, vol. 75(C), pages 248-264.
    9. Younkin, Peter & Kuppuswamy, Venkat, 2019. "Discounted: The effect of founder race on the price of new products," Journal of Business Venturing, Elsevier, vol. 34(2), pages 389-412.
    10. Hongchang Wang & Eric Overby, 2023. "Do Political Differences Inhibit Market Transactions? An Investigation in the Context of Online Lending," Management Science, INFORMS, vol. 69(8), pages 4685-4706, August.
    11. Chen, Yutong, 2024. "Does the gig economy discriminate against women? Evidence from physicians in China," Journal of Development Economics, Elsevier, vol. 169(C).
    12. Kas, Judith, 2022. "The effect of online reputation systems on intergroup inequality," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
    13. Carlsson, Magnus & Fumarco, Luca & Rooth, Dan-Olof, 2013. "Artifactual Evidence of Discrimination in Correspondence Studies? A Replication of the Neumark Method," IZA Discussion Papers 7619, Institute of Labor Economics (IZA).
    14. Laouénan, Morgane & Rathelot, Roland, 2017. "Ethnic Discrimination on an Online Marketplace of Vacation Rental," CAGE Online Working Paper Series 318, Competitive Advantage in the Global Economy (CAGE).
    15. Halla, Martin & Kah, Christopher & Sausgruber, Rupert, 2021. "Testing for Ethnic Discrimination in Outpatient Health Care: Evidence from a Field Experiment in Germany," Department of Economics Working Paper Series 319, WU Vienna University of Economics and Business.
    16. Eline D'Haene & Juan Tur Cardona & Stijn Speelman & Koen Schoors & Marijke D'Haese, 2021. "Unraveling preferences for religious ties in food transactions: A consumer perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 701-716, July.
    17. Gaddis, S. Michael, 2018. "An Introduction to Audit Studies in the Social Sciences," SocArXiv e5hfc, Center for Open Science.
    18. Batsaikhan, Mongoljin & Gørtz, Mette & Kennes, John & Lyng, Ran Sun & Monte, Daniel & Tumennasan, Norovsambuu, 2021. "Discrimination and Daycare Choice: Evidence from a Randomized Survey," IZA Discussion Papers 14874, Institute of Labor Economics (IZA).
    19. Peter Younkin & Venkat Kuppuswamy, 2018. "The Colorblind Crowd? Founder Race and Performance in Crowdfunding," Management Science, INFORMS, vol. 64(7), pages 3269-3287, July.
    20. Karl Taeuscher & Eric Yanfei Zhao & Michael Lounsbury, 2022. "Categories and narratives as sources of distinctiveness: Cultural entrepreneurship within and across categories," Strategic Management Journal, Wiley Blackwell, vol. 43(10), pages 2101-2134, October.

    More about this item

    Keywords

    Sharing economy; Discrimination; Racism; Discrete choice experiment; Stated preferences; Social inclusion;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:elmark:v:32:y:2022:i:3:d:10.1007_s12525-021-00505-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.