The American Economic Review
American Economic Association
This paper treats racial integration as an innovation in economic process in which economic entities ﬁnd it advantageous to utilize potentially more productive inputs previously unavailable due to law, custom, or managerial discretion. Data on the racial integration of Major League Baseball and Atlantic Coast Conference basketball are employed to address this issue. The central question examined is which type of team integrated ﬁrst—losers or winners? The results strongly support the idea that entrepreneurship trumps competitive rivalry; that is, winning teams led the process of racial integration.
Please use publisher's recommended citation.