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Experience and Gender Effects in an Acquiring-a-Company Experiment Allowing for Value Messages

Author

Listed:
  • Daniela Di Cagno

    (LUISS Guido Carli)

  • Arianna Galliera

    (LUISS Guido Carli)

  • Werner Güth

    (Luiss Guido Carli and Frankfurt School of Finance and Management)

  • Noemi Pace

    (Universy Ca' Foscari of Venice, and CEIS Tor Vergata)

  • Luca Panaccione

    (DEDI and CEIS, Università di Roma "Tor Vergata",)

Abstract

This paper focuses on a bargaining experiment in which the privately informed seller of a company sends a value message to the uninformed potential buyer who then proposes a price for acquiring the company. Participants are constantly in the role of either seller or buyer and interact over 30 rounds with randomly changing partners in the other role. We test how overstating the value of the company, underpricing the received value message and acceptance of price offers are affected by experience and gender (constellation). Like in our companion paper on single play (Di Cagno et al. 2015) we control via treatments for awareness of gender (constellation). One main hypothesis is that gender (constellation) matters but that the effects become weaker with more experience and that the main experience effects apply across gender (constellations).

Suggested Citation

  • Daniela Di Cagno & Arianna Galliera & Werner Güth & Noemi Pace & Luca Panaccione, 2015. "Experience and Gender Effects in an Acquiring-a-Company Experiment Allowing for Value Messages," CEIS Research Paper 346, Tor Vergata University, CEIS, revised 15 Jun 2015.
    • Handle: RePEc:rtv:ceisrp:346
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    References listed on IDEAS

    as
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    8. Daniela Di Cagno & Arianna Galliera & Werner G�th & Noemi Pace & Luca Pannaccione, 2014. "Make-Up and Suspicion in Acquiring-a-Company. An experiment controlling for gender and gender constellations," Working Papers 2014:26, Department of Economics, University of Venice "Ca' Foscari".
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    Cited by:

    1. Galliera, Arianna, 2018. "Self-selecting random or cumulative pay? A bargaining experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 72(C), pages 106-120.
    2. D. Di Cagno & A. Galliera & W. Güth & N. Pace & L. Panaccione, 2016. "Make-up and suspicion in bargaining with cheap talk: An experiment controlling for gender and gender constellation," Theory and Decision, Springer, vol. 80(3), pages 463-471, March.
    3. Arianna Galliera & Noemi Pace, 2015. "To Switch or Not to Switch Payment Scheme? Determinants and Effects in a Bargaining Game," Working Papers 2015:33, Department of Economics, University of Venice "Ca' Foscari".

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    More about this item

    Keywords

    bargaining; cheap-talk; experience effect; experiment; gender; winner’s curse;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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