In ‘Discrimination as a Determinant of Economic Inequality’, Ali Ahmed, Mats Lundahl, and Eskil Wadensjö examine how economic theory can be used to unearth the mechanisms to produce discrimination and inequality, to identify the winners and losers from it, and to construct recipes for the eradication of discrimination. They stress the fact that economics is far from a unified social science and hence the need to apply different theories as different situations call for it. Two notorious cases are examined: the South African apartheid system and the American discrimination of blacks by whites. The chapter ends with an examination of a number of contemporary cases of ethnic discrimination of minorities.