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The effect of gender and gender pairing on bargaining: Evidence from an artefactual field experiment

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  • D’Exelle, Ben
  • Gutekunst, Christine
  • Riedl, Arno

Abstract

Men and women negotiate differently, which might create gender inequality in earnings from bargaining. We study the role of gender and gender pairing in bilateral bargaining, using an artefactual field experiment in rural Uganda, in which pairs of participants bargain over the division of a fixed amount of resources. We vary the gender composition of the bargaining pairs as well as the disclosure of the participants’ identities. We find gender differences in earnings and agreements, but only when identities and, thus, genders are disclosed. Women in same-gender pairs obtain higher final earnings than men and women in mixed-gender pairs, which is due to the lower likelihood of disagreement among women-only pairs. We identify gender differences in demands and demand inconsistency--the money left on the table once demands are corrected for beliefs about the counterpart’s demand--as mechanisms behind the observed gender differences in bargaining outcomes. In addition, we find that gender differences in demand inconsistency are related to gender differences in education and a measure of expected generosity.

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  • D’Exelle, Ben & Gutekunst, Christine & Riedl, Arno, 2023. "The effect of gender and gender pairing on bargaining: Evidence from an artefactual field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 237-269.
    • Handle: RePEc:eee:jeborg:v:205:y:2023:i:c:p:237-269
    DOI: 10.1016/j.jebo.2022.10.024
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    More about this item

    Keywords

    Bargaining; Gender; Gender pairing; Experiment;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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