The Neighbor is King: Customer Discrimination in the Housing Market

Pierre-Philippe Combes, Bruno Decreuse, Benoit Schmutz and Alain Trannoy

No 1224, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: This paper provides a method to single out customer-based discrimination in the housing market. We build a matching model with ethnic externalities where landlords differ in the number of housing units they own within the same building. Multiple-dwelling landlords discriminate more often than single-dwelling landlords only if some tenants are prejudiced against the minority group. By testing the null hypothesis whereby minority tenants are equally likely to have a multiple-dwelling landlord, we can test whether there is customer discrimination or not. We run the test on French data and show evidence of customer discrimination in the rental market.

Keywords: Customer Discrimination; Matching frictions; Neighborhood Externalities; Housing Market. (search for similar items in EconPapers)
JEL-codes: J71 R21 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2012-09-24
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
Working Paper: The neighbor is king: Customer discrimination in the housing market (2012)
Working Paper: The Neighbor is King: Customer Discrimination in the Housing Market (2012)
Working Paper: The neighbor is king: Customer discrimination in the housing market (2011)
Working Paper: The Neighbor is King: Customer Discrimination in the Housing Market (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:1224

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