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Experimental Evidence on Bargaining Power Within Couples

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  • Beblo, Miriam
  • Beninger, Denis

Abstract

We conducted an experiment on the nature of income sharing within 95 established couples in Germany. In a first step, the partners revealed their individual preferences by making consumption choices independently. In a second step, decisions were taken jointly over five different rounds with varying resource allocations between the partners. From this design we are able to derive a female bargaining power index without structural restrictions, reflecting the sharing rule within the couple. We observe this index to increase significantly with the female partner s money allocation. This effect is robust to the inclusion of socio-economic, distributional and behavioural features of the couple.

Suggested Citation

  • Beblo, Miriam & Beninger, Denis, 2014. "Experimental Evidence on Bargaining Power Within Couples," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100628, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc14:100628
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    References listed on IDEAS

    as
    1. Miriam Beblo & Denis Beninger, 2012. "Do husbands and wives pool their incomes? Experimental evidence," Working Papers of BETA 2012-10, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    2. Laurens Cherchye & Bram De Rock & Frederic Vermeulen, 2012. "Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information," American Economic Review, American Economic Association, vol. 102(7), pages 3377-3405, December.
    3. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December.
    4. Miriam Beblo & Denis Beninger & François Cochard & Hélène Couprie & Astrid Hopfensitz, 2015. "Efficiency-Equality Trade-off within French and German Couples A Comparative Experimental Study," Annals of Economics and Statistics, GENES, issue 117-118, pages 233-252.
    5. M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
    6. P.-A. Chiappori & I. Ekeland, 2009. "The Microeconomics of Efficient Group Behavior: Identification," Econometrica, Econometric Society, vol. 77(3), pages 763-799, May.
    7. Martin Browning & Pierre-André Chiappori & Valérie Lechene, 2006. "Collective and Unitary Models: A Clarification," Review of Economics of the Household, Springer, vol. 4(1), pages 5-14, March.
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    10. Glenn W. Harrison & Morten I. Lau & E. Elisabet Rutström, 2007. "Estimating Risk Attitudes in Denmark: A Field Experiment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(2), pages 341-368, June.
    11. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-467, June.
    12. Apps, Patricia F. & Rees, Ray, 1988. "Taxation and the household," Journal of Public Economics, Elsevier, vol. 35(3), pages 355-369, April.
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    14. Gustavo J. Bobonis, 2009. "Is the Allocation of Resources within the Household Efficient? New Evidence from a Randomized Experiment," Journal of Political Economy, University of Chicago Press, vol. 117(3), pages 453-503, June.
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    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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