Males under the age of 25 must pay far higher auto insurance premiums than females in

Chapter 23, Problem 13

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Males under the age of 25 must pay far higher auto insurance premiums than females in this age group. How does this fact relate to statistical discrimination? Statistical discrimination implies that discrimination can persist indefinitely, while the taste-for-discrimination model suggests that competition might reduce discrimination in the long run. Explain the difference. LO23.7

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