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Statistical discrimination and statistical informativeness

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Listed:
  • Matteo Escud'e
  • Paula Onuchic
  • Ludvig Sinander
  • Quitz'e Valenzuela-Stookey

Abstract

We study the link between Phelps-Aigner-Cain-type statistical discrimination and familiar notions of statistical informativeness. Our central insight is that Blackwell's Theorem, suitably relabeled, characterizes statistical discrimination in terms of statistical informativeness. This delivers one-half of Chambers and Echenique's (2021) characterization of statistical discrimination as a corollary, and suggests a different interpretation of it: that discrimination is inevitable. In addition, Blackwell's Theorem delivers a number of finer-grained insights into the nature of statistical discrimination. We argue that the discrimination-informativeness link is quite general, illustrating with an informativeness characterization of a different type of discrimination.

Suggested Citation

  • Matteo Escud'e & Paula Onuchic & Ludvig Sinander & Quitz'e Valenzuela-Stookey, 2022. "Statistical discrimination and statistical informativeness," Papers 2205.07128, arXiv.org, revised May 2022.
    • Handle: RePEc:arx:papers:2205.07128
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