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Sequential Bargaining in the Field: Evidence from Millions of Online Bargaining Interactions / Matthew Backus, Thomas Blake, Bradley Larsen, Steven Tadelis.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Backus, Matthew.
Contributor:
National Bureau of Economic Research.
Blake, Thomas.
Larsen, Bradley.
Tadelis, Steven.
Series:
Working Paper Series (National Bureau of Economic Research) no. w24306.
NBER working paper series no. w24306
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Sequential Bargaining in the Field
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2018.
Summary:
We study patterns of behavior in bilateral bargaining situations using a rich, new dataset describing over 88 million listings from eBay's Best Offer platform, with back-and-forth bargaining occurring in over 25 million of these listings. We document patterns of behavior and relate them to "rational" and "psychological" theories of bargaining and find that bargaining patterns are consistent with elements of both approaches. Most notably, players with more bargaining strength typically receive better outcomes, and players exhibit equitable behavior by making offers that split-the-difference between negotiating positions. We are publicly releasing this new dataset to support additional empirical bargaining research.
Notes:
Print version record
February 2018.

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