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Gender differences in alternating-offer bargaining: an experimental study

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  • Iñigo Hernandez-Arenaz

    (Universidad Pública de Navarra & INARBE)

  • Nagore Iriberri

    (University of the Basque Country, UPV/EHU and IKERBASQUE, Basque Foundation for Science)

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.

Suggested Citation

  • Iñigo Hernandez-Arenaz & Nagore Iriberri, 2023. "Gender differences in alternating-offer bargaining: an experimental study," Experimental Economics, Springer;Economic Science Association, vol. 26(4), pages 879-914, September.
    • Handle: RePEc:kap:expeco:v:26:y:2023:i:4:d:10.1007_s10683-023-09796-9
    DOI: 10.1007/s10683-023-09796-9
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    More about this item

    Keywords

    J16; D91; C75;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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