Statistical discrimination : can persist in the long run if differences in average characteristics among groups continue.

will tend to diminish in the long run because nondiscriminating firms will drive out discriminating firms.

requires that employers have discrimination coefficients greater than zero.

is also known as occupational segregation.

An electronics store is running a promotion where for every video game purchased, the customer receives a coupon upon checkout to purchase a second game at a 50% discount. the coupons expire in one year. the store normally recognized a gross profit margin of 40% of the selling price on video games. how would the store account for a purchase using the discount coupon?