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Stakes Discrimination and Costly Information Acquisition

Jewel Evans, Accounting PhD Student

Do the stakes matter when it relates to discrimination? Blacks are consistently underrepresented in high stake roles when compared to low stake roles. For example, Blacks represent ~11% of the Fortune 500 board members, but only ~1.5% of the Fortune 500 executives, despite the fact that the two labor pools overlap significantly. A similar example can be seen in the NFL where Blacks represent 70% of all NFL players, but only 15% of quarterbacks and 10% of coaches are Black. The role of an executive, quarterback, or coach are considered to be high stakes, and I (Evans) propose in this paper that the stakes matters when it comes to discrimination.

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Stakes Discrimination and Costly Information Acquisition