This chapter examines discrimination in the marketplace and, more specifically, the legitimacy and appropriate scope of anti-discrimination legislation. Following a brief survey of current legal norms, it relies on positive economic analysis to explain possible motivations for discrimination. It then examines the efforts made to justify anti-discrimination legislation on standard efficiency grounds. It argues that these efforts are unsuccessful. Rather, the appropriate way to adequately capture the issues pertaining to market discrimination is to directly take into account a deontological constraint against harming people by discriminating against them. The chapter analyzes the deontological constraint against discrimination, examines the relationships between this constraint and distributive bases for anti-discrimination legislation, and demonstrates how current legal norms are best understood as resting on moderate deontology and embodying threshold constraints.
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