The Visible Hand: Race and Online Market Outcomes

@article{Doleac2010TheVH,
  title={The Visible Hand: Race and Online Market Outcomes},
  author={Jennifer L. Doleac and Luke C.D. Stein},
  journal={IO: Empirical Studies of Firms \& Markets eJournal},
  year={2010}
}
We examine the effect of race on market outcomes by selling iPods through local online classified advertisements throughout the United States in a year-long field experiment. Each ad features a photograph of the product being held by a dark- or light-skinned (“black” or “white”) hand. To provide context, we also consider a group of sellers against whom buyers might statistically discriminate for similar reasons: white sellers with wrist tattoos. Black sellers do worse than white sellers on a… 

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TLDR
It is revealed that in a competitive market, buyers that intend to discriminate exist but they are prevented from influencing the market outcome by eBay's automatic disclosure of sellers’ names.
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