The actual discrimination in the market place against a minority group depends on the combined discrimination of employers, workers, consum- ers, schools, and governments. The analysis shows that sometimes the environment greatly softens, while at other times it magnifies, the impact of a given amount of prejudice. For example, the discrepancy in wages be- tween equally productive blacks and whites, or women and men, would be much smaller than the degree of prejudice against blacks and women when many companies can efficiently specialize in employing mainly blacks or women
