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Why do we discriminate? The role of motivated reasoning

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  • Eyting, Markus

Abstract

Identifying the cause of discrimination is crucial to design effective policies and to understand discrimination dynamics. Building on traditional models, this paper introduces a new explanation for discrimination: discrimination based on motivated reasoning. By systematically acquiring and processing information, individuals form motivated beliefs and consequentially discriminate based on these beliefs. Through a series of experiments, I show the existence of discrimination based on motivated reasoning and demonstrate important differences to statistical discrimination and taste-based discrimination. Finally, I demonstrate how this form of discrimination can be alleviated by limiting individuals' scope to interpret information.

Suggested Citation

  • Eyting, Markus, 2022. "Why do we discriminate? The role of motivated reasoning," SAFE Working Paper Series 356, Leibniz Institute for Financial Research SAFE.
    • Handle: RePEc:zbw:safewp:356
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    Cited by:

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    2. Ruzzier, Christian A. & Woo, Marcelo D., 2023. "Discrimination with inaccurate beliefs and confirmation bias," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 379-390.

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    More about this item

    Keywords

    discrimination; belief formation; motivated reasoning;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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