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Shopping While Female: Who Pays Higher Prices and Why?

Anne Fitzpatrick

American Economic Review · 2017 · Volume 107 · Issue 5

DOI: 10.1257/aer.p20171127

Abstract

I estimate gender price discrimination in the Ugandan antimalarial drug market with an audit study. To determine whether results are consistent with statistical or taste-based discrimination, I contrast gender results with results by ethnicity (tribe). Vendors initially offer women prices that are $0.12 (3 percent) higher. However, women are 16 percentage points more likely to successfully bargain for a discount, resulting in no differential in price paid. Results are stronger among majority-tribe females. I find no differences in drug quality. Both women and minorities report better service quality. Offer price differentials suggest statistical discrimination; there is no differential for prices paid.

Keywords

Consumer Economics: Empirical Analysis, Economics of Minorities, Races, Indigenous Peoples, and Immigrants, Non-labor Discrimination, Economics of Gender, Production, Pricing, and Market Structure, Size Distribution of Firms, Chemicals, Plastics, Rubber, Drugs, Biotechnology, Retail and Wholesale Trade, e-Commerce, Economic Development: Human Resources, Human Development, Income Distribution, Migration

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