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Gender Differences in Bargaining Outcomes: A Field Experiment on Discrimination / Marco Castillo, Ragan Petrie, Máximo Torero, Lise Vesterlund.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Castillo, Marco.
Contributor:
National Bureau of Economic Research.
Petrie, Ragan.
Torero, Máximo.
Vesterlund, Lise.
Series:
Working Paper Series (National Bureau of Economic Research) no. w18093.
NBER working paper series no. w18093
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2012.
Summary:
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.
Notes:
Print version record
May 2012.

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