How markets penalize racists, slowly

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Chapter 4 in Sports Economics Uncut, 2018, pp 51-64 from Edward Elgar Publishing

Abstract: Films such as Glory Road open windows into the breakdown of bias on a case-by-case basis. Chapter 4 affords a more systematic look at how the process of racial integration interacts with competitive motives, entrepreneurial skill, team performance, and the social environment. The process of integration is an innovation driven by the search for a competitive edge but also reflecting a wider set of influences. The chapter makes use of data from MLB and college basketball to illustrate the importance of forward-looking managers along with geographic and institutional factors. The integration process punished mangers that clung to their biases such as Adolph Rupp. Change always starts with discrete, quick jumps, but the process of grinding down bias can be slow, requiring more than 20 years for MLB players and longer in the NFL. Managerial integration requires much longer. The process also comes at a cost.

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2018
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