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explanation for this pattern, namely preference- and belief-free discrimination. In our setting, an employer can increase effort … discrimination between workers optimal. …
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disparities, and segregation. The use of race as a signal arises here, as in models of statistical discrimination, from imperfect …
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Many observers argue that one of the major causes of the 2007-2009 financial turmoil was the abnormal accumulation of risk by banks. This paper provides a signaling explanation for this "risk race." If banks' returns can be observed while risk cannot, less efficient banks can hide their type by...
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discrimination, from imperfect information about the return to transactions with particular agents. If agents are able to learn from …
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