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Gender Differences in Bar gaining Outcomes: A Field Experiment on Discrimination

Author

Listed:
  • Marco Castillo

    () (Interdisciplinary Center for Economic Science and Department of Economics, George Mason University)

  • Ragan Petrie

    () (Interdisciplinary Center for Economic Science and Department of Economics, George Mason University)

  • Maximo Torero

    () (International Food Policy Research Institute)

  • Lise Vesterlund

    () (Department of Economics, University of Pittsburgh)

Abstract

We examine gender differences in bargaining outcomes in a highly competitive and commonly used market: the taxi market in Lima, Peru. Examining the entire path of negotiation we find that men face higher initial prices and rejection rates. These differentials are consistent with both statistical and taste-based discrimination. To identify the source of the inferior treatment of men we conduct an experiment where passengers send a signal on valuation before negotiating. The signal eliminates gender differences and the response is shown only to be consistent with statistical discrimination. Our study secures identification within the market of interest and demonstrates that there are environments where sophisticated statistical inference is the sole source of differential gender outcomes.Length: 35

Suggested Citation

  • Marco Castillo & Ragan Petrie & Maximo Torero & Lise Vesterlund, 2011. "Gender Differences in Bar gaining Outcomes: A Field Experiment on Discrimination," Working Papers 1029, George Mason University, Interdisciplinary Center for Economic Science.
  • Handle: RePEc:gms:wpaper:1029
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Mujcic, Redzo & Frijters, Paul, 2013. "Still Not Allowed on the Bus: It Matters If You're Black or White!," IZA Discussion Papers 7300, Institute for the Study of Labor (IZA).
    2. Omar Al-Ubaydli & John List, 2015. "Do Natural Field Experiments Afford Researchers More or Less Control than Laboratory Experiments? A Simple Model," Artefactual Field Experiments 00458, The Field Experiments Website.
    3. Shuwen Li & Xiandong Qin & Daniel Houser, 2017. "Revisiting Gender Differences in Ultimatum Bargaining: Experimental Evidence from the US and China," Working Papers 1064, George Mason University, Interdisciplinary Center for Economic Science.
    4. Brit Grosskopf & Graeme Pearce, 2016. "Do you mind me paying less? Measuring Other-Regarding Preferences in the Market for Taxis," Natural Field Experiments 00556, The Field Experiments Website.
    5. Omar Al-Ubaydli & John A. List, 2016. "Field Experiments in Markets," NBER Working Papers 22113, National Bureau of Economic Research, Inc.
    6. Jeff Butler & Paola Giuliano & Luigi Guiso, 2016. "Trust and Cheating," Economic Journal, Royal Economic Society, vol. 126(595), pages 1703-1738, September.
    7. Card, David & Cardoso, Ana Rute & Kline, Patrick, 2013. "Bargaining and the Gender Wage Gap: A Direct Assessment," IZA Discussion Papers 7592, Institute for the Study of Labor (IZA).
    8. Cueva, Carlos & Rustichini, Aldo, 2015. "Is financial instability male-driven? Gender and cognitive skills in experimental asset markets," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 330-344.
    9. repec:eee:jeborg:v:140:y:2017:i:c:p:35-55 is not listed on IDEAS
    10. Brett, Jeanne & Thompson, Leigh, 2016. "Negotiation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 136(C), pages 68-79.
    11. Loukas Balafoutas & Rudolf Kerschbamer & Matthias Sutter, 2017. "Second‐Degree Moral Hazard In A Real‐World Credence Goods Market," Economic Journal, Royal Economic Society, vol. 127(599), pages 1-18, February.
    12. Bengtsson, Niklas, 2015. "Efficient informal trade: Theory and experimental evidence from the Cape Town taxi market," Journal of Development Economics, Elsevier, vol. 115(C), pages 85-98.
    13. Marcus Dittrich & Andreas Knabe & Kristina Leipold, 2014. "Gender Differences In Experimental Wage Negotiations," Economic Inquiry, Western Economic Association International, vol. 52(2), pages 862-873, April.
    14. repec:wly:jmoncb:v:48:y:2016:i:8:p:1691-1724 is not listed on IDEAS
    15. Delavande, Adeline & Zafar, Basit, 2013. "Gender discrimination and social identity: experimental evidence from urban Pakistan," Staff Reports 593, Federal Reserve Bank of New York.
    16. Meghan R. Busse & Ayelet Israeli & Florian Zettelmeyer, 2013. "Repairing the Damage: The Effect of Price Expectations on Auto-Repair Price Quotes," NBER Working Papers 19154, National Bureau of Economic Research, Inc.
    17. Nikoloz Kudashvili, "undated". "Sources of Statistical Discrimination: Experimental Evidence from Georgia," CERGE-EI Working Papers wp612, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    18. Deryugina, Tatyana, 2013. "When Are Appearances Deceiving? The Nature of the Beauty Premium," MPRA Paper 53581, University Library of Munich, Germany.
    19. Christine L. Exley & Muriel Niederle & Lise Vesterlund, 2016. "Knowing When to Ask: The Cost of Leaning In," NBER Working Papers 22961, National Bureau of Economic Research, Inc.
    20. Steven Ongena & Alexander Popov, 2016. "Gender Bias and Credit Access," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 48(8), pages 1691-1724, December.
    21. Deryugina, Tatyana & Shurchkov, Olga, 2015. "Now you see it, now you don’t: The vanishing beauty premium," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 331-345.
    22. Omar Al-Ubaydli & John List, 2015. "Control in Experiments: A Simple Model," Artefactual Field Experiments 00397, The Field Experiments Website.

    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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