&gt; To see whether instances of discrimination represent mere prejudice or rational decision-making, one can simply ask: could you make money by not engaging in that discrimination?<p>Make any money, or the same money? Also is statistical discrimination better than taste-based?<p>A racist restaurant-owner might, for example, live in a fairly racist town and decide that not hiring Black people or even not allowing Black customers would increase the amount of money he makes, since in this racist town White people might not like to mingle.<p>So he could still make money in this scenario, just a lot less of it.<p>Would you consider that statistical discrimination?<p>I believe that lots of business owners used this very rationalization in the Southern United States, in bygone eras.