Research into discrimination in US sport found that attendance at some US sports was higher when clubs

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Research into discrimination in US sport found that attendance at some US sports was higher when clubs had a higher proportion of white players than black players and that this may have something to do with the fact that black players earned less than white players.

Customer discrimination in sports, therefore, seems to have an important effect on players’ earnings. Note that this is possible because sports fans know the players’

characteristics, including their race. Why is this knowledge important for the existence of discrimination? Give some specific examples of industries where customer discrimination is and is not likely to influence wages.

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Economics

ISBN: 124344

2nd Edition

Authors: N. Gregory Mankiw

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