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Title:Discrimination as a competitive device: the case of local television news PDF Logo
Authors:Myers, Caitlin Knowles
Issue Date:2005
Series/Report no.:IZA Discussion Papers 1802
Abstract:Local news offers a unique look not only at customer preferences but also at the strategic response of firms to these preferences. This paper uses a combination of ratings data and newly gathered information on television stations in 25 U.S. markets to examine the decisions of competing firms and how customers respond to the journalists who appear on-air at the different stations in a market. The results indicate that there is a negative correlation between the racial, gender, and age composition of competing firms. Moreover, the ratings data suggest that the stations with relatively few blacks on-air are catering to the more discriminatory customers. While a similar result is found for age and gender, the reverse holds for other groups, suggesting possible tastes for diversity for Hispanics and Asians. Taken as a whole, the evidence supports a theoretical model in which firms differentiate via the characteristics of their employees in response to customer prejudice.
Subjects:economics of gender and minorities
customer discrimination
product
JEL:J71
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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