Repairing the Damage: The Effect of Price Expectations on Auto-Repair Price Quotes
In this paper we investigate whether sellers treat consumers differently on the basis of how well-informed consumers appear to be. We implement a large-scale field experiment in which callers request price quotes from automotive repair shops. We show that sellers alter their initial price quotes depending on whether consumers appear to be well-informed, uninformed, or poorly informed about market prices. We find that repair shops quote higher prices to callers who cite a higher expected price. We find that women are quoted higher prices than men when callers signal that they are uninformed about market prices. However, gender differences disappear when callers mention an expected price for the repair. Finally, we find that repair shops are more likely to offer a price concession if asked to do so by a woman than a man.
|Date of creation:||Jun 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alan T. Sorensen, 2000. "Equilibrium Price Dispersion in Retail Markets for Prescription Drugs," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 833-862, August.
- Andreas Leibbrandt & John List, 2012.
"Do women avoid salary negotiations? Evidence from a large-scale natural field experiment,"
Natural Field Experiments
00201, The Field Experiments Website.
- Andreas Leibbrandt & John A. List, 2012. "Do Women Avoid Salary Negotiations? Evidence from a Large Scale Natural Field Experiment," NBER Working Papers 18511, National Bureau of Economic Research, Inc.
- Marco Castillo & Ragan Petrie & Máximo Torero & Lise Vesterlund, 2012.
"Gender Differences in Bargaining Outcomes: A Field Experiment on Discrimination,"
NBER Working Papers
18093, National Bureau of Economic Research, Inc.
- Castillo, Marco & Petrie, Ragan & Torero, Maximo & Vesterlund, Lise, 2013. "Gender differences in bargaining outcomes: A field experiment on discrimination," Journal of Public Economics, Elsevier, vol. 99(C), pages 35-48.
- 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.
- Lise Vesterlund, 2011. "Gender Differences in Bargaining Outcomes: A Field Experiment on Discrimination," Working Papers 450, University of Pittsburgh, Department of Economics, revised Jan 2011.
- Valley, Kathleen L. & White, Sally Blount & Neale, Margaret A. & Bazerman, Max H., 1992. "Agents as information brokers: The effects of information disclosure on negotiated outcomes," Organizational Behavior and Human Decision Processes, Elsevier, vol. 51(2), pages 220-236, March.
- Stahl, Dale O, II, 1989. "Oligopolistic Pricing with Sequential Consumer Search," American Economic Review, American Economic Association, vol. 79(4), pages 700-712, September.
- Uri Gneezy & John List & Michael K. Price, 2012. "Toward an Understanding of Why People Discriminate: Evidence from a Series of Natural Field Experiments," NBER Working Papers 17855, National Bureau of Economic Research, Inc.
- Henry S. Schneider, 2012. "Agency Problems and Reputation in Expert Services: Evidence from Auto Repair," Journal of Industrial Economics, Wiley Blackwell, vol. 60(3), pages 406-433, 09.
- Gurumurthy Kalyanaram & Russell S. Winer, 1995. "Empirical Generalizations from Reference Price Research," Marketing Science, INFORMS, vol. 14(3_supplem), pages G161-G169.
- Simon P. Anderson & André de Palma, 2005.
"Price Dispersion and Consumer Reservation Prices,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 14(1), pages 61-91, 03.
- Ayres, Ian & Siegelman, Peter, 1995. "Race and Gender Discrimination in Bargaining for a New Car," American Economic Review, American Economic Association, vol. 85(3), pages 304-21, June.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:19154. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.