A study by UPF reveals discrimination on grounds of ethnic background in Spain’s leading online second-hand marketplace, especially when buying

(Press-News.org) Research conducted by Pompeu Fabra University (UPF) finds that discrimination exists based on ethnic background in Spain’s leading online second-hand marketplace, especially when it comes to buying, towards people with Arab and Chinese names, who should offer up to 3% more to be treated the same as people with Spanish names. The study, by Jorge Rodríguez Menés, Clara Cortina and Maria José González, researchers with the Sociodemography Research Group (DemoSoc) of the UPF Department of Political and Social Sciences, aims to analyse the prevalence of discrimination against ethnic minorities in the main online second-hand market in Spain, using an experimental approach.

“Our research shows how subtle discriminations in daily transactions reflect broader social problems"

The study examines “the need to understand the degree and nature of ethnic discrimination, which has important political implications in culturally diverse societies like Spain”, the researchers assert. According to Rodríguez-Menés, Cortina and González, “our research shows how subtle discriminations in daily transactions reflect broader social problems and offers concrete ideas to reduce these inequalities”.

Two experiments to detect discrimination on grounds of name The study is based on a simple question that researchers nevertheless consider important: “Do people experience discrimination solely on the basis of their ethnic background, reflected in their name?”. That is, they used the people’s names as the main indicator of background. To investigate, they conducted two field experiments: in the first, purchase offers were sent to real sellers using names that sounded Spanish, Arabic, Chinese or Latin American, and in the second, similar products were published for sale under these same types of names. All of the messages were similar and the negotiating conditions (fixed price or bargaining) were systematically monitored.

Discrimination of people with Arabic and Chinese names as buyers, but not as sellers The experiments showed that when acting as buyers, people with Arabic and Chinese names received fewer positive responses. The study estimates that they should have increased their offer by 3% over the price requested by sellers to match the likelihood of successful purchase with native names. Buyers with Latin American names also suffered discrimination, but less markedly and not statistically significantly.

In contrast, as sellers, none of the minorities suffered significant discrimination. Buyers did not avoid buying from sellers with minority names, although —as was also the case with Spanish sellers— they were less likely to buy if the price was higher than market price.

Discrimination based on cautious mistrust The study shows that these are not simply moral prejudices towards minorities, since in this case the negative effects would appear both for purchases and sales, and would affect all members of minorities equally. Nor is it solely due to stereotypes about the assumed lower purchasing power of minority buyers (first-moment statistical discrimination).

What was found was a more subtle pattern known as “second-moment statistical discrimination”, based on cautious mistrust: sellers perceive minority buyers as less predictable, with more variable or uncertain behaviours with respect to the ‘prototypical transactor’. This harms minority buyers when sellers want to sell at full price and prefer to avoid interactions that can complicate the sale” , the researchers argue.

Conversely, when sellers are in a weaker position (for example, because they need to sell in a hurry or the product is below standard), they are more likely to accept offers from minorities, thinking that there may be “unusual” buyers more willing to buy products that are in worse condition or offer fewer guarantees.

Interestingly, the researchers found that when people of minority background as sellers they do not suffer the same rejection: “One explanation could be that, in Spain, minorities are overrepresented among small business owners and the self-employed, which can generate more familiarity and confidence when they play this role”, they reflect.

The study suggests that common solutions, such as hiding one’s name or profile photo, may not be effective in these types of markets. The authors recommend strategies to increase trust and familiarity, such as more detailed profiles, verified rating systems, and secure payment methods.

This research, published in the journal Social Indicators Research and funded by the Social Observatory of the “la Caixa” Foundation, shows that “discrimination is not always due to conscious prejudices or racist attitudes. It often arises from a mistrust of the unknown or of people perceived as ‘less typical’. This can create hidden barriers for people of foreign origin, even in everyday situations, such as selling or buying second-hand items”.

Reference work: Rodríguez-Menés, J., González, M.J., Cortina, C. (July 2025) “When your name matters: Two field experiments on ethnic discrimination in Spain’s main online consumer-to-consumer market”, Social Indicators Research

https://doi.org/10.1007/s11205-025-03672-0

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