This is a past event. Its details are archived for historical purposes.
The contact information may no longer be valid.
Please visit our current events listings to look for similar events by title, location, or venue.
Wednesday, October 13, 2021 at 11:15am to 12:45pm
Brad Larsen, Stanford University
How Well Does Bargaining Work in Consumer Markets? A Robust Bounds Approach (joint with Joachim Freyberger)
Abstract: This study provides a structural analysis of detailed, alternating-offer bargaining data from eBay, deriving bounds on buyers and sellers private value distributions using a range of assumptions on behavior. These assumptions range from very weak (assuming only that acceptance and rejection decisions are rational) to less weak (e.g., assuming that bargaining offers are weakly increasing in players' private values). We estimate the bounds and show what they imply for consumer negotiation behavior in theory and practice. For the median product, bargaining ends in impasse in 43\% of negotiations even when the buyer values the good more than the seller.