Group identity and discrimination in small markets: Asymmetry of in-group favors

Arbeitspapier

We experimentally study the inuence of induced group identity on the determination of prices and beliefs in a small market game. We create group identity through a focal point coordination game. Subjects play a three-person bargaining game where one seller can sell an indivisible good to one of two competing buyers under four different treatments varying the buyer-seller constellation. We find evidence of in group favoritism on the buyer side. However we do not detect a lower ask prices for in-group sellers for in-group buyers, indicating that in-group favoritism is in favor of the more powerful market participan.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Jena Economic Research Papers ; No. 2011,043

Classification and Topics

• Classification: Wirtschaft ; Design of Experiments: Laboratory, Individual ; Rationing; Licensing ; Oligopoly and Other Imperfect Markets ; Transactional Relationships; Contracts and Reputation; Networks
• Subject: group identity ; experiments ; markets ; bargaining ; Verhandlungstheorie ; Marktmechanismus ; Test ; Arbeitsgruppe ; Soziale Rolle

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Riener, Gerhard ; Schacht, Alexander
• Event: Veröffentlichung
• (who): Friedrich Schiller University Jena and Max Planck Institute of Economics
• (where): Jena
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/56892
• Last update: 10.03.2025, 11:43 AM CET