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A 1991 test of new car dealerships in Chicago indicated that dealerships offered significantly lower prices to white male testers than to similarly situated black and-or female testers: white female testers were asked to pay 40% higher markups than white male testers; black male testers were asked to pay more than twice the markup of white male testers; and black female testers were asked to pay more than three times the markup of white male testers.1 This article extends the results of this initial test by presenting not only more authoritative evidence of discrimination but also a new quantitative method of identifying the causes of discrimination. Although the results of the original study were based on 165 negotiations, the original article emphasized that: [t]he most significant methodological weakness concerns the number of testers per tester type .... Only six testers were hired: one white female, one black female, one black male, and three white males. Thus, for example, the results demonstrating discrimination against black females are based on tests conducted by an individual black female (paired with one of three white males).2 This article presents the results of an expanded audit study that corrects for this weakness. In the expanded audits, 38 testers, including 5 black males, 7 black females, and 8 white females, negotiated for over 400 automobiles. The results are more authoritative than

Further Evidence of Discrimination in New Car Negotiations and Estimates of Its Cause