Discriminations in the Market for “Lemons”: A multicriteria correspondence test in France

Souleymane Mbaye (), Mathieu Bunel, Yannick L'Horty (), Pascale Petit and Loïc du Parquet ()
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Souleymane Mbaye: ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel
Loïc du Parquet: GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université

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Abstract: The existence of discrimination by the sellers of second-hand cars is a little studied subject, whereas the possibility of acquiring a car conditions multiple aspects of economic and social life. In this article, we apply the correspondence test method to the purchase of a used car in order to measure the extent of discrimination in this market according to the ethnic origin, gender, place of residence and age of the applicant. We constructed six profiles of fictitious individuals, perfectly similar except for their age, gender, origin indicated by the consonance of their surname and first name or place of residence. Between January and May 2015, we used these fictitious profiles to respond to 489 used car sales ads located in Ile-de- France. Statistical analysis of the responses to these tests reveals the existence of discrimination according to gender and place of residence. The analysis shows that information based discrimination prevails on the second-hand car market rather than taste based discriminations.

Keywords: Discrimination; Testing; Mobility; Used cars (search for similar items in EconPapers)
Date: 2020
Note: View the original document on HAL open archive server: https://hal.science/hal-03389425v1
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Published in Economics of Transportation, 2020, 24, pp.100192. ⟨10.1016/j.ecotra.2020.100192⟩

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Journal Article: Discriminations in the market for “Lemons”: A multicriteria correspondence test in France (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03389425

DOI: 10.1016/j.ecotra.2020.100192

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