We develop a stylized dynamic model of highway policing in which a non-racist policeman is given incentives to arrest … police officers …

The literature contains ambiguous findings as to whether statistical discrimination, e.g. in the form of racial … determined, statistical discrimination as well as taste-based discrimination lead to an increase in criminal activity. Moreover …, the negative effects of statistical discrimination on deterrence are more persistent than similar effects due to taste …

This article appeals to heterogeneity in workers' non-wage preferences to model taste-based discrimination. Firms hire … both types of workers and pay lower wages to minority workers, whatever their taste for discrimination. A single prejudiced … firm in the market produces a substantial wage gap in all firms. Consequently, discrimination allows unprejudiced firms to …

of market concentration within an industry and the degree of discrimination. However, we do find an indirect link in … which market liberalization has a more pronounced effect in reducing discrimination in more concentrated markets …