Gender differences in alternating-offer bargaining: an experimental study

Abstract

A laboratory study was carried out to analyze the relationship between ambiguity regarding the sharing norms in structured alternating-offer bargaining and gender differences in bargaining. Symmetric environments, where a 50:50 split emerges as the unique sensible norm, showed the lowest ambiguity and gender differences are absent. We increased ambiguity by introducing asymmetries into the bargaining environment by making one bargaining party get a higher share than the other (due to empowerment, entitlement or informational asymmetries), but without imposing new sharing norms. In these situations, men are less likely to reach an agreement, but, when they do, they obtain a larger share of the pie. As a result, men and women show similar overall earnings but earnings are lower when bargaining with men. We find suggestive evidence that gender differences diminish when we reduce ambiguity regarding the sharing norms by providing information about other participants’ agreements in asymmetric environments.

Gender and Nominal Power in Multilateral Bargaining

“…Experimental studies have looked at the factors underlying the behavioral differences in bargaining, e.g., attitudes to norm compliance [13]. However, the existing body of experimental research has almost exclusively focused on bilateral bargaining situations, such as the ultimatum game [15,16] or two-player alternating offers bargaining [17,18].…”

The Impact of the Menstrual Cycle on Bargaining Behavior

“…As suggested byHernandez-Arenaz and Iriberri (2023), the differentiation between payoffs conditional and unconditional on a deal is important: being less willing to compromise can result in lower deal rates, but higher payoffs if a deal is reached.…”