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Gender Differences in Negotiation: Evidence from Real Estate Transactions

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Listed:
  • Steffen Andersen
  • Julie Marx
  • Kasper Meisner Nielsen
  • Lise Vesterlund

Abstract

We investigate negotiations over real estate and find that men secure better prices than women when negotiating to buy and sell property. However, the gender difference declines substantially when improving controls for the property’s value; and is eliminated when controlling for unobserved heterogeneity in a sample of repeated sales. Rather than evidence of gender differences in negotiation, the initial difference in prices is evidence that men and women demand different properties. Consistently we find no gender difference in the sales price secured for property inherited from a deceased parent. Provided appropriate controls men and women fare equally well when negotiating over real estate. Our study demonstrates that inference on gender differences in negotiation relies critically on controlling for the value of the negotiated item.

Suggested Citation

  • Steffen Andersen & Julie Marx & Kasper Meisner Nielsen & Lise Vesterlund, 2020. "Gender Differences in Negotiation: Evidence from Real Estate Transactions," NBER Working Papers 27318, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:27318
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    References listed on IDEAS

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    1. Bowles, Hannah Riley & McGinn, Kathleen, 2008. "Gender in Job Negotiations: A Two-Level Game," Working Paper Series rwp08-027, Harvard University, John F. Kennedy School of Government.
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    11. Amanatullah, Emily T. & Tinsley, Catherine H., 2013. "Punishing female negotiators for asserting too much…or not enough: Exploring why advocacy moderates backlash against assertive female negotiators," Organizational Behavior and Human Decision Processes, Elsevier, vol. 120(1), pages 110-122.
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    13. 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.
    14. Maria Recalde & Lise Vesterlund, 2020. "Gender Differences in Negotiation and Policy for Improvement," NBER Working Papers 28183, National Bureau of Economic Research, Inc.
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    Cited by:

    1. William N Goetzmann & Christophe Spaenjers & Stijn Van Nieuwerburgh, 2021. "Real and Private-Value Assets [Gendered prices]," The Review of Financial Studies, Society for Financial Studies, vol. 34(8), pages 3497-3526.
    2. Shelly Lundberg, 2023. "Gender Economics: Dead-Ends and New Opportunities," Research in Labor Economics, in: 50th Celebratory Volume, volume 50, pages 151-189, Emerald Group Publishing Limited.
    3. Kiessling, Lukas & Pinger, Pia & Seegers, Philipp & Bergerhoff, Jan, 2024. "Gender differences in wage expectations and negotiation," Labour Economics, Elsevier, vol. 87(C).
    4. Massoud Moslehpour & Mein-Woei Suen & Yu-Te Tu & Ranfeng Qiu, 2021. "The Moderating Role of Gender in the Relationship between Ethics and Negotiation Style," Advances in Decision Sciences, Asia University, Taiwan, vol. 25(3), pages 26-45, September.
    5. Carlsson, Fredrik & Kataria, Mitesh & Lampi, Elina, 2024. "Sexual objectification of women in media and the gender wage gap: Does exposure to objectifying pictures lower the reservation wage?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 108(C).
    6. Barbara Biasi & Heather Sarsons, 2020. "Flexible Wages, Bargaining, and the Gender Gap," NBER Working Papers 27894, National Bureau of Economic Research, Inc.
    7. Jack Blundell, 2021. "Wage responses to gender pay gap reporting requirements," CEP Discussion Papers dp1750, Centre for Economic Performance, LSE.
    8. Paul Goldsmith‐Pinkham & Kelly Shue, 2023. "The Gender Gap in Housing Returns," Journal of Finance, American Finance Association, vol. 78(2), pages 1097-1145, April.
    9. Jetter, Michael & Stockley, Kieran, 2021. "Gender Match and the Gender Gap in Venture Capital Financing: Evidence from Shark Tank," IZA Discussion Papers 14069, Institute of Labor Economics (IZA).
    10. Dragana Cvijanović & Christophe Spaenjers, 2021. "“We’ll Always Have Paris”: Out-of-Country Buyers in the Housing Market," Management Science, INFORMS, vol. 67(7), pages 4120-4138, July.
    11. Popov, Alexander, 2022. "The division of spoils in a booming industry," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 341-369.
    12. Michael Jetter & Kieran Stockley, 2023. "Gender match and negotiation: evidence from angel investment on Shark Tank," Empirical Economics, Springer, vol. 64(4), pages 1947-1977, April.
    13. Blundell, Jack, 2021. "Wage responses to gender pay gap reporting requirements," LSE Research Online Documents on Economics 114416, London School of Economics and Political Science, LSE Library.
    14. 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.

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    More about this item

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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