Corpus ID: 216144680

Statistical Discrimination in Ratings-Guided Markets

@article{Che2020StatisticalDI,
  title={Statistical Discrimination in Ratings-Guided Markets},
  author={Yeon-Koo Che and Kyung-min Kim and Weijie Zhong},
  journal={ArXiv},
  year={2020},
  volume={abs/2004.11531}
}
  • Yeon-Koo Che, Kyung-min Kim, Weijie Zhong
  • Published 2020
  • Computer Science, Mathematics, Economics
  • ArXiv
  • We study statistical discrimination of individuals based on payoff-irrelevant social identities in markets where ratings/recommendations facilitate social learning among users. Despite the potential promise and guarantee for the ratings/recommendation algorithms to be fair and free of human bias and prejudice, we identify the possible vulnerability of the ratings-based social learning to discriminatory inferences on social groups. In our model, users' equilibrium attention decisions may lead… CONTINUE READING

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