Question

Are there ways which markets do decrease discrimination? Give examples

Answer 1

Yes markets can decrease discrimination. One of the reason is it makes discriminators pay because they loose opportunity to work with highly productive workers. E. G in South Africa white employers opposed discrimination against black labours because it led to more costs. Similarly licensing by doctors can be discretionary against new doctors. But free market will break down those barriers. Also in markets everybody is able to submit tenders, sell their products etc. This tends to reduce discriminatory behaviour of other economic agents as they have to face equal competition. E. G a low cost coffee shop which is open for even blacks will attract even white customers if it offers same or better quality coffee at lower prices. Thus will reduce discriminatory behaviour.