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

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, the authors 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. The authors 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, the authors 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.

Language

  • English

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  • Accession Number: 01759677
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Dec 7 2020 11:07AM