lectur2-page6 - economic perspective. What group above...

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Now that I have your interest, I hope, let us take a look at a couple of other societal issues from an economic perspective. The slide above summarizes the results of a study conducted at Northwestern University by a Professor Ayers in 1993 in Chicago, Illinois. Graduate students were authorized to find potential automobile buyers in the above racial and gender categories, and provide them with the funds to negotiate the purchase of an automobile. As you can see, auto dealers were able to extract less profit from white males than any of the other categories. Is there a “good ol’ boy” network at play here fostering racial and sexual discrimination? It good ol boy network at play here fostering racial and sexual discrimination? It may appear so on the surface. Once education levels were figured in the analysis, a different picture appeared. Think about it. Let’s take a look at this data from an
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Unformatted text preview: economic perspective. What group above would you think would have the most education? Remember, it was not that long ago that society thought females should get married, have children, and stay at home; what did they need with a quality education? My wife grew up during these times, but chose to go against the “societal grain” and get an education. Believe it or not, there are a significant number of folks that still think this way today. It was found, in this study, that education was the primary determinant in the ability to negotiate a purchase price that minimized the profit to the auto dealer. Yes, education levels are correlated in this study with race and gender, but it is not clear that any type of discrimination on the grounds of race or gender was occurring. Conclusion: The less you know the more you get ripped off 6 Conclusion: The less you know, the more you get ripped off....
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.

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