This question regards Graddy (1994).

a. Considering Table 2, column 1, suppose that Graddy had found that the coefficient on Asian was -0.12 and the coefficient on Black was 0.05 but that all other results in the paper remained the same. What would she find to be the estimated higher percent price that Asians paid relative to Whites? What about for Asians relative to Blacks?

b. What do you see as the single most likely reason that the fish vendor charges different prices for whiting to different racial groups? Please explain.

82 / THE RAND JOURNAL OF ECONOMICS TABLE 2 Determinants of the Price of Whiting Dependent Variable: PRICE (1) (2) (3) (4) (5) (6) (7) Medium Quality Times before AVQUAN AVQUAN 6 6:00-7:00 All All Variables 7:00 A.M. 180 A.M. Time Qualities Times TIMI 0074 -.0125 .0010 0253 0572* (.0138) (.0197) (.031 1) (.0135) (.0148) TIM2 0190 0008 0217 0320*+ .0701* (.0144) (.0252) (.0245) (.0131) (.0152) TIM3 0406* (.0138) MLOC -.0190 -.0424 .0024 -.0048 -.0223 -.0282-* -.0309** (.0142) (.0233) (.0284) (.0214) (.0139) (-0130) (.0136) STORE .0247 -.0419 0398 .0069 0260 0204 .0129 (.0194) (.0343) (.0356) (.0262) (.0194) (.0205) (.0169) ASIAN -.0635+ -.0707* -.0220 -.0463** -.0653* -.0670* -.0444+ (.0180) (.0240) (.0693) (.0191) (.0179) (.0175) (.0151) BLACK 0004 .0408 0739 -.0112 .0025 .0145 0209 (.0252) (.0320) (.0860) (.0247) (.0251) (.0256) (-0217) AVQUAN (X 10 5) -3.97 -20.3 -6.03 -3.16 -3.80 -.440 -4.17 (2.78) (24.8) (6.70) (3.76) (2.79) (2.77) (2.41) CASH 0168 0341 .0532 -.0000 .0187 .0072 -.0014 (.0188) .0222) (.0745) (.0194) (.0190) (.0183) (.0160) REG .0007 0037 .0010 -.0013 -.0006 .0000 (.0012) -.0005 (.0022) (.0025) (.0014) (.0012) (.0013) (.001 1) TIME (X10 5) -31.1 -3.45 (21.5) (6.12) QUAL -.0473* (.0077) 984 987 985 992 983 956 978 Number of observations 131 72 59 54 131 250 165 Standard errors are in parentheses. The coefficients on the date dummies are not reported; in all regressions an F-test indicates joint significance at .01. * Significant at the .01 level. ** Significant at the .05 level