Experimenting with Affirmative Action: The Coate and Loury Model

16 Pages Posted: 8 Sep 2008

See all articles by Michael P. Kidd

Michael P. Kidd

University of Aberdeen - Business School

Paul S. Carlin

Indiana University Purdue University Indianapolis (IUPUI) - Department of Economics

Jonathan Pot

affiliation not provided to SSRN

Abstract

Coate and Loury (1993) suggest the impact of affirmative action on a negative stereotype is theoretically ambiguous leading to either: a benign equilibrium in which affirmative action eradicates the negative stereotype and leads to equal proportional representation of the two groups; or alternatively a patronising equilibrium in which the stereotype persists. The current paper examines this theoretical ambiguity within the context of a laboratory experiment. Although benign and patronising equilibria are equally plausible in theory, the laboratory experiments easily replicate most features of the benign equilibrium, but diverge from the theoretically predicted patronising equilibrium.

Suggested Citation

Kidd, Michael P. and Carlin, Paul S. and Pot, Jonathan, Experimenting with Affirmative Action: The Coate and Loury Model. Economic Record, Vol. 84, No. 266, pp. 322-337, September 2008, Available at SSRN: https://ssrn.com/abstract=1264073 or http://dx.doi.org/10.1111/j.1475-4932.2008.00494.x

Michael P. Kidd (Contact Author)

University of Aberdeen - Business School ( email )

Edward Wright Building
Dunbar Street
Old Aberdeen AB24 3QY, AB24 3QY
Scotland

Paul S. Carlin

Indiana University Purdue University Indianapolis (IUPUI) - Department of Economics ( email )

425 University Boulevard
Indianapolis, IN 46202-5140
Germany
317-274-4756 (Phone)
317-274 2347 (Fax)

Jonathan Pot

affiliation not provided to SSRN

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