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Bargaining power: Do individuals outperform groups?

Author

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  • S.B. Caudill
  • L. Ciucci
  • C. Detotto

Abstract

The goal of this study is to examine the relative bargaining power of individuals versus groups, with a specific focus on gender distinctions among single individuals. Utilizing the Inverse Probability Weighting methodology on property transactions in Corsica in the time span 2012-2017, our research reveals that single individuals tend to possess greater bargaining power compared to those in non-single relationships. Single buyers pay 9.43%-9.48% less when purchasing from group sellers and 12.91%-13.44% less when purchasing from single sellers compared to group buyers. The magnitude of this effect for singles is even larger for male singles. Moreover, our analysis uncovers an asymmetry in bargaining power dynamics, indicating a prevalence of greater power among buyers as opposed to sellers.

Suggested Citation

  • S.B. Caudill & L. Ciucci & C. Detotto, 2024. "Bargaining power: Do individuals outperform groups?," Working Paper CRENoS 202419, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    • Handle: RePEc:cns:cnscwp:202419
    as

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    References listed on IDEAS

    as
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    5. John P. Harding & Stuart S. Rosenthal & C. F. Sirmans, 2003. "Estimating Bargaining Power in the Market for Existing Homes," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 178-188, February.
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