00:01
Hello students, so in this lecture, maybe we'll be discussing about statistical discrimination.
00:08
In a situation, let's say the statistics discrimination is made on the basis of the auto insurance premiums.
00:16
And it further says that the males under the age of 25 are meant to pay a higher auto insurance premium as compared to females under the same age group.
00:29
So let's understand what is statistical discrimination.
00:39
So statistical discrimination could be explained as or it implies that discrimination that persist indefinitely within the taste for discrimination model and suggest that the competition might reduce discrimination in the long run.
00:58
So let's understand why this statistical differentiation persist.
01:02
So the statistics statistical discrimination.
01:06
Occurs when the people are judged on the basis of their average characteristics.
01:11
So they are judged on the basis of their average characteristics of the groups to which they belong.
01:34
So the insurance company base auto insurance premiums on the statistical information available.
01:40
So they charge premium according to the statistics or the information that is available to them.
01:45
And also the consequent discrimination will continue as long as there is a different in the accident rates by the gender in this age group.
01:54
So the accident rates are also different in both these age group...