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Beautiful Game TheoryHow Soccer Can Help Economics$
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Ignacio Palacios-Huerta

Print publication date: 2014

Print ISBN-13: 9780691144023

Published to Princeton Scholarship Online: October 2017

DOI: 10.23943/princeton/9780691144023.001.0001

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Discrimination: From the Makana Football Association to Europe

Discrimination: From the Makana Football Association to Europe

Chapter:
(p.174) 11 Discrimination: From the Makana Football Association to Europe
Source:
Beautiful Game Theory
Author(s):

Ignacio Palacios-Huerta

Publisher:
Princeton University Press
DOI:10.23943/princeton/9780691144023.003.0012

This chapter is concerned with taste-based models of discrimination, where the pioneer framework of analysis is the model first formalized in Gary S. Becker's classic The Economics of Discrimination (1957). The Becker model of discrimination differs from almost all other major models of discrimination in that it departs from the standard assumption that firms maximize profits or very nearly so. As long as discrimination persists in equilibrium, prejudiced firms earn lower profits. Similarly, if workers engage in prejudice (e.g., by refusing to work with certain groups of workers) or if consumers do (e.g., boycotting products supplied by those groups), then they forego earnings or pay higher prices because of their prejudice. The evidence in this chapter comes from English league soccer.

Keywords:   taste-based discrimination, soccer, professional soccer players, English league soccer, prejudice

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