Racial attention deficit.

Despite efforts toward equity in organizations and institutions, minority members report that they are often ignored, their contributions undervalued. Against this backdrop, we conduct a large-sample, multiyear experimental study to investigate patterns of attention. The findings provide causal evidence of a racial attention deficit: Even when in their best interest, White Americans pay less attention to Black peers.

Ethnic diversity deflates price bubbles.

Markets are central to modern society, so their failures can be devastating. Here, we examine a prominent failure: price bubbles. Bubbles emerge when traders err collectively in pricing, causing misfit between market prices and the true values of assets.