Bargaining power: Do individuals outperform groups?

TitleBargaining power: Do individuals outperform groups?
Publication TypeWorking Paper
Year of Publication2024
AuthorsCaudill, SB, Ciucci, L, Detotto, C
Number24_19
ISBN Number978 88 68515 461
KeywordsBargaining power, gender, Hedonic regression, IPW, Single
Abstract

The goal of this study is to examine the relative bargaining power of individuals versus groups, with a specific focus on gender distinctions among single individuals. Utilizing the Inverse Probability Weighting methodology on property transactions in Corsica in the time span 2012-2017, our research reveals that single individuals tend to possess greater bargaining power compared to those in non-single relationships. Single buyers pay 9.43%-9.48% less when purchasing from group sellers and 12.91%-13.44% less when purchasing from single sellers compared to group buyers. The magnitude of this effect for singles is even larger for male singles. Moreover, our analysis uncovers an asymmetry in bargaining power dynamics, indicating a prevalence of greater power among buyers as opposed to sellers.

Citation Key8921
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