On the 28th February, Diogo Geraldes (University College Dublin) will be at ISEG to present the study on "Closing the Gender Gap in Multilateral Negotiations Through Institutional Design ".
Free admission.
Abstract:
Experimental evidence from different subject samples shows that men earn more than women in the majority of negotiations. Three stylised modes of behaviour emerge as potential reasons for this gap: men make opening offers more often, men prefer to partner with other men, and when partnering with each other, their partnerships are more stable compared to mixed-gender ones. We design three experimental interventions to investigate the explanatory role that each channel plays in the emergence of the gap, and, subsequently provide potential solutions. We find that enabling all parties involved to make an initial proposal at exactly the same time does not close the earnings gap. Indeed, it has the opposite effect and increases the gap. Hiding gender eliminates bias in the choice of partner, alters bargaining dynamics, and equalises average earnings. Finally, allowing the use of instantly-binding agreements in bargaining closes the gap, not only because mixed-gender partnerships become more stable, but also because women become the preferred partners. Our results highlight how the attributes of the negotiation environment interact with gender, and suggest that the design of bargaining institutions should be leveraged to promote gender equity.