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Sturm College of Law


Affirmative action, Economic exclusion


In Part I, this Note examines the effects of discrimination in the marketplace to suggest a connection between current racial disparities" and past "no-fault" discrimination. Part II demonstrates why race-neutral policies are likely to prove ineffective for reducing these disparities. Finally, Part III argues that competitive, race-conscious affirmative action is unlikely to create a "moral hazard" and that the burden placed on nonminorities by such a program is justifiable.

Publication Statement

Originally published as Martin J. Katz, The Economics of Discrimination: The Three Fallacies of Croson, 100 YALE L.J. 1033 (1991). Copyright is held by the author. User is responsible for all copyright compliance.