Author
Li, S. X., Doğan, Kutsal, Haruvy, E.
Publication Date
2011-01
Publication Place
-
Elsevier
Subject
Group identity, Experiments, Markets, Bargaining
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
0167-7187
Record ID
b5a51b9a-116d-4a13-bc1c-57ff9ff6248b
Library Location
Management Information Systems
Date
2011-01
Sample Text
We present a laboratory experiment that measures the effects of group identity—one's perceived membership in social groups—on market transactions in an oligopoly market with a few sellers and buyers. We artificially induce group identity using art preferences and college majors in different treatments, respectively. Subjects are randomly assigned into the roles of buyers and sellers and interact repeatedly. We find that the presence of groups influences both the selection of trading partners and the determination of prices. All else equal, sellers are more likely to make offers to ingroup buyers, and the buyers are more likely to accept offers from ingroup sellers. There are considerable intergroup price differentials with the outgroup sellers charging a lower price than the ingroup sellers.
DOI
10.1016/j.ijindorg.2010.04.001
Cilt
29
