Ethnic divisions in markets: Pre-analysis plan
Presenter
Doctoral Candidate in Economics
Time and location
North Quad 4330, Thursday (1:00-2:00) pm
Abstract
Many developing countries have ethnically fragmented populations, especially those in Africa. Across the continent, recent audit studies in markets with alternating-offer bargaining show that these divisions lead to lower prices for coethnic buyers. Why do ethnic divisions have this effect on African markets? In my talk, I will present a pre-analysis plan for a lab experiment in Nairobi, Kenya that seeks to answer this question. In the first part of my experiment, I test potential mechanisms. In the second, I add asymmetric information to examine how the mechanisms interact with a common market failure in developing countries. I will conclude my presentation by discussing a preliminary model for organizing my analysis.