Statistical discrimination

From Diversifying Economic Quality: A Wiki for Instructors and Departments

Revision as of 21:32, 17 June 2012 by Jvenato1 (talk | contribs)
Jump to: navigation, search

Statistical Discrimination occurs when agents use an observable characteristic of an individual to make inferences about another attribute that is relevant to the transaction but more difficult to observe. The agents' beliefs about group averages affect their treatment of an individual member of the group.

Compare to animus-based discrimination, implicit associations, and institutional discrimination.