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Cultural And Risk-Related Determinants Of Gender Differences In Ultimatum Bargaining

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Author Info
Ainhoa Jaramillo Gutiérrez () (Universitat Jaume I)
Nikolaos Georgantzis () (Universitat Jaume I)
Aurora García Gallego () (Universitat Jaume I)
Miguel Ginés Vilar () (Universitat Jaume I)

Additional information is available for the following registered author(s):

Abstract

We study culture and risk aversion as causes of gender differences in ultimatum bargaining. It has often been conjectured in the literature that gender differences in bargaining experiments are partly due to differences in risky decision making. Using the data obtained from our experimental sessions with Spanish subjects, we are able to disentangle risk-related and genuinely gender-specific effects in ultimatum games framed as salary negotiation between an employer and an employee. First, we confirm the broadly accepted result that women are more risk averse than men. Gender differences in both employer and employee-subjects' behavior remain significant after risk attitudes are accounted for. In fact, we show that the reported gender differences are not because of but rather despite females' higher risk aversion. Gender effects are found to depend also on cultural differences. Greek and Spanish females reject more and offer lower wages than males. British subjects exhibit gender effects only with respect to employee behavior, but the sign of the effect is opposite to that observed in the case of Greece and Spain.

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Publisher Info
Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2007-08.

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Length: 51 pages
Date of creation: Apr 2007
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Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2007-08

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Related research
Keywords: Ultimatum bargaining salaries gender risk attitudes experiments

Find related papers by JEL classification:
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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References listed on IDEAS
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  11. Matthias Sutter & Ronald Bosman & Martin Kocher & Frans van Winden, 2003. "Experimental evidence of the importance of gender pairing in bargaining," Discussion Papers on Strategic Interaction 2003-27, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
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  14. Eckel, Catherine C & Grossman, Philip J, 2001. "Chivalry and Solidarity in Ultimatum Games," Economic Inquiry, Oxford University Press, vol. 39(2), pages 171-88, April.
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