Does Competition Reduce Discimination?

Evidence from College Football

By Jeffrey Miron. 

"A standard economic view holds that markets will moderate some kinds of discrimination because “profit” maximizing organizations will recognize that discrimination is costly to their bottom line or other goals.

A recent study looked to the integration of college football in the 1970s for supporting evidence. By comparing conference-wide rankings and team win percentages before and after a team integrated, the study found that

poorly performing teams, potentially seeking to improve their win rate, choose to integrate.

Also,

worse teams were more likely to integrate than better teams… A likely explanation … is that poorly performing teams integrated to attract talented players.

These results indicate that

firms with low profits stop discriminating, or discriminate less, in a bid to increase profitability.

Somewhere, Gary Becker is smiling."