Taste for Discrimination

The exclusion example still raises the issue of why some profit-maximizing firms do not evade the laws or customs to undercut their competitors. One solution proposed by Becker was that either firms or their customers have a “taste for discrimination. Perhaps some managers do not like hiring black workers maybe salespersons are prejudiced and don’t want to sell to Hispanic customers. Critics complain that this approach is tautological, in essence saying, “Things are the way they are because people like them that way.

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