Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264290 
Authors: 
Year of Publication: 
2022
Series/Report no.: 
SAFE Working Paper No. 356
Publisher: 
Leibniz Institute for Financial Research SAFE, Frankfurt a. M.
Abstract: 
Identifying the cause of discrimination is crucial to design effective policies and to understand discrimination dynamics. Building on traditional models, this paper introduces a new explanation for discrimination: discrimination based on motivated reasoning. By systematically acquiring and processing information, individuals form motivated beliefs and consequentially discriminate based on these beliefs. Through a series of experiments, I show the existence of discrimination based on motivated reasoning and demonstrate important differences to statistical discrimination and taste-based discrimination. Finally, I demonstrate how this form of discrimination can be alleviated by limiting individuals' scope to interpret information.
Subjects: 
discrimination
belief formation
motivated reasoning
JEL: 
D90
J71
D83
Document Type: 
Working Paper

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