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Gender Differences in Bargaining Outcomes: A Field Experiment on Discrimination

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Listed:
  • Marco Castillo
  • Ragan Petrie
  • Máximo Torero
  • Lise Vesterlund

Abstract

We examine gender differences in bargaining outcomes in a highly competitive and commonly used market: the taxi market in Lima, Peru. Examining the entire path of negotiation we find that men face higher initial prices and rejection rates. These differentials are consistent with both statistical and taste-based discrimination. To identify the source of the inferior treatment of men we conduct an experiment where passengers send a signal on valuation before negotiating. The signal eliminates gender differences and the response is shown only to be consistent with statistical discrimination. Our study secures identification within the market of interest and demonstrates that there are environments where sophisticated statistical inference is the sole source of differential gender outcomes.

Suggested Citation

  • Marco Castillo & Ragan Petrie & Máximo Torero & Lise Vesterlund, 2012. "Gender Differences in Bargaining Outcomes: A Field Experiment on Discrimination," NBER Working Papers 18093, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:18093
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    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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