Religious discrimination in urban rental markets: an identity-based game-theoretic analysis

Abstract

Urban segregation in the rental market persists due to identity-based discrimination, not just economic factors. This study models how a majority landlord decides between renting to majority or minority tenants, considering both market and discriminatory pricing. It further studies how minority tenants and neighbors interact, highlighting identity-driven decisions and social dynamics. The model identifies that the majority landlord will never rent to the minority tenant at market price. It also analyzes various equilibrium outcomes and highlights how neighborhood dynamics can reinforce or challenge segregation in urban housing markets.