Sequential Bargaining in the Field: Evidence from Millions of Online Bargaining Interactions

@inproceedings{Backus2018SequentialBI,
  title={Sequential Bargaining in the Field: Evidence from Millions of Online Bargaining Interactions},
  author={Matthew Backus and Thomas Blake and Bradley J. Larsen and Steven Tadelis},
  year={2018}
}
We study patterns of behavior in bilateral bargaining situations using a rich, new dataset describing over 88 million listings from eBay's Best Offer platform, with back-and-forth bargaining occurring in over 25 million of these listings. We document patterns of behavior and relate them to "rational" and "psychological" theories of bargaining and find that bargaining patterns are consistent with elements of both approaches. Most notably, players with more bargaining strength typically receive… CONTINUE READING

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