Market competition and discrimination

This paper studies the effect of competition on ethnic discrimination by carrying out a field experiment in context rice market Bangladesh. We recruit professional buyers (middlemen) to act as judges providing quality rating and price quote for samples that we randomly associate with farmers bearing majority or minority names. First, find there is no difference buyers’ evaluation quality. Second, local buyers, who have monopsony power, discriminate against quoting lower their relative farmers. Third, wholesale face fierce marketplace, do not A second lab-in-the-field survey information indicate both are prejudiced suggests can eliminate buyers.