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Hometown-specific Bargaining Power in an Experimental Market in China

Author

Listed:
  • Xiangdong Qin

    (School of Economics, Shanghai Jiao Tong University, China)

  • Junyi Shen

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • Ken-Ichi Shimomura

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • Takehiko Yamato

    (Department of Social Engineering, Graduate School of Decision Science and Technology, Tokyo Institute of Technology, Japan)

Abstract

We conducted a market experiment in China to examine potential effects of subjects’ hometowns on their behaviors as well as potential differences between team and individual trades. We observed that group size affected bargaining power and subsequently payoffs in different directions according to where the subjects were from. This finding suggests that it is important to take one’s hometown into account when comparing economic behavior or decision-making between teams and individuals, especially in the countries or regions where hometown diversity plays a central role in explaining differences in business management and local market performance.

Suggested Citation

  • Xiangdong Qin & Junyi Shen & Ken-Ichi Shimomura & Takehiko Yamato, 2013. "Hometown-specific Bargaining Power in an Experimental Market in China," Discussion Paper Series DP2013-28, Research Institute for Economics & Business Administration, Kobe University, revised Jan 2016.
    • Handle: RePEc:kob:dpaper:dp2013-28
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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2013-28.pdf
    File Function: Revised version, 2016
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    References listed on IDEAS

    as
    1. Gary Charness & Matthias Sutter, 2012. "Groups Make Better Self-Interested Decisions," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 157-176, Summer.
    2. Cason, Timothy N & Mui, Vai-Lam, 1997. "A Laboratory Study of Group Polarisation in the Team Dictator Game," Economic Journal, Royal Economic Society, vol. 107(444), pages 1465-1483, September.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Emiko Fukuda & Shuhei Sato & Junyi Shen & Ken-Ichi Shimomura & Takehiko Yamato, 2020. "Walrasian Dynamics with Endowment Changes: The Gale Example in a Laboratory Market Experiment," Discussion Paper Series DP2020-20, Research Institute for Economics & Business Administration, Kobe University, revised Apr 2021.

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    More about this item

    Keywords

    Hometown; Market experiment; Team trade; Individual trade; China;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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