Shopping While Female: Who Pays Higher Prices and Why?
American Economic Review
vol. 107,
no. 5, May 2017
(pp. 146-49)
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.Citation
Fitzpatrick, Anne. 2017. "Shopping While Female: Who Pays Higher Prices and Why?" American Economic Review, 107 (5): 146-49. DOI: 10.1257/aer.p20171127Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J16 Economics of Gender; Non-labor Discrimination
- L11 Production, Pricing, and Market Structure; Size Distribution of Firms
- L65 Chemicals; Plastics; Rubber; Drugs; Biotechnology
- L81 Retail and Wholesale Trade; e-Commerce
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration