Neighborhood stigma affects transactions.
Position | Commerce - Brief article |
The stigma associated with particular neighborhoods has a direct impact on economic transactions, a team of New York University sociologists has found. Their study shows that, when sellers are seen as being from an economically disadvantaged neighborhood, they receive fewer responses to advertisements placed in online marketplaces.
"Advertisements identifying the seller as a resident of a lower-income neighborhood receive significantly fewer responses than advertisements identifying the seller as a resident of a more affluent neighborhood," explains study author and doctoral student Max Besbris. 'Where an individual resides thus plays a critical role in their success as participants in economic exchanges--which, of course, affects their ability to make a living." Besbris suggests that the reason for the lower response rate to sellers from disadvantaged neighborhoods might be "because buyers used residence to infer the seller's race or ethnicity, economic status, trustworthiness, or dependability. There are...
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