DP12561 Gender Differences in Alternating-Offer Bargaining: An Experimental Study

Author(s): Hernandez-Arenaz, Nagore Iriberri
Publication Date: January 2018
Date Revised: June 2019
Programme Areas: Labour Economics, Public Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=12561

A laboratory study is carried out to test for gender differences in structured alternating-offer bargaining. In a symmetric environment the 50:50 split is the norm and we find no hard evidence for gender differences. In asymmetric environments, where there is no clear sharing norm, but one bargaining party is expected to get more than the other (due to empowerment, entitlement or informational asymmetries), men are less likely to reach an agreement, and when they do, they bargain for longer and obtain a larger share of the pie. As a result, men and women show similar overall earnings but earnings are lower when bargaining with men.