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Bargaining power: Do individuals outperform groups?

Author

Listed:
  • 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
    1. Bianca Biagi & Steven B. Caudill & Laura Ciucci & Claudio Detotto & Franklin Mixon, 2021. "Relative bargaining power of residential home traders and real estate investors," Applied Economics, Taylor & Francis Journals, vol. 53(34), pages 3962-3971, July.
    2. S. Derya Uysal, 2015. "Doubly Robust Estimation of Causal Effects with Multivalued Treatments: An Application to the Returns to Schooling," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 30(5), pages 763-786, August.
    3. Steffen Andersen & Julie Marx & Kasper Meisner Nielsen & Lise Vesterlund, 2021. "Gender Differences in Negotiation: Evidence from Real Estate Transactions," The Economic Journal, Royal Economic Society, vol. 131(638), pages 2304-2332.
    4. Ascione, Grazia Sveva & Ciucci, Laura & Detotto, Claudio & Sterzi, Valerio, 2024. "University patent litigation in the United States: Do we have a problem?," Research Policy, Elsevier, vol. 53(2).
    5. Steven Caudill & Claudio Detotto & Dominique Prunetti, 2020. "Bargaining power in apartment sales in Corsica: A latent class approach," Urban Studies, Urban Studies Journal Limited, vol. 57(13), pages 2754-2772, October.
    6. Julie A. Nelson, 2015. "Are Women Really More Risk-Averse Than Men? A Re-Analysis Of The Literature Using Expanded Methods," Journal of Economic Surveys, Wiley Blackwell, vol. 29(3), pages 566-585, July.
    7. Ihlanfeldt, Keith & Mayock, Tom, 2009. "Price discrimination in the housing market," Journal of Urban Economics, Elsevier, vol. 66(2), pages 125-140, September.
    8. 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.
    9. Philip Seagraves & Paul Gallimore, 2013. "The Gender Gap in Real Estate Sales: Negotiation Skill or Agent Selection?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 41(3), pages 600-631, September.
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