Economists have studied the effects of racial prejudice on urban residential structure using a set of models that focus on conditions at the border between the black and white areas. This paper reviews the theoretical literature on these border models and investigates their generality. Section 1 considers the border model developed by Bailey in…

One crucial step toward an understanding of discrimination against blacks in rental housing is a careful analysis of the landlord's economic incentives. Such analysis does not exist in the literature. This paper develops a model of landlord behavior under perfect competition when both black and white tenants have racial prejudice. This model…

Racial prejudice is said to influence strongly the locational decisions of households in urban areas. This paper introduces racial prejudice into a model of an urban area and derives several results about residential location. A previously developed long-run model of an urban area adds a locational dimension to a model of the housing market under…