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SUMMARY:How Costly are Cultural Biases?
DTSTART:20210924T150000
DTEND:20210924T163000
DTSTAMP:20260919T215357Z
UID:d37056301f328939990048077648b456b85c2c10f85559fe4f342c9c
CATEGORIES:Conferences - Seminars
DESCRIPTION:Francesco D’Acunto\, Boston College\nWe exploit a leading Fi
 nTech peer-to-peer lending platform paired with an automated robo-advising
  lending tool to test for and quantify the effects of cultural biases in l
 arge-stake risky choices for which the scope for statistical discriminatio
 n is minimal. Comparing the choices lenders make with those made by the ro
 bo-advising tool on their behalf\, we find that both in-group vs. out-grou
 p discrimination and stereotypical discrimination are pervasive and econom
 ically sizable. Discrimination makes lenders worse off in terms of consump
 tion utility—discriminating lenders face 32% higher default rates and ab
 out 11% lower returns on the loans they issue to borrowers belonging to fa
 vored demographics\, relative to borrowers in the discriminated groups. Al
 l the results are stronger for lenders who reside in regions where the sal
 ience of cultural biases is higher.\n 
LOCATION:Zoom
STATUS:CONFIRMED
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