Scopus İndeksli Yayınlar Koleksiyonu / Scopus Indexed Publications Collection
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Article An Empirical Study of Sequential Offer Bargaining During the Festival of Sacrifice(Elsevier, 2024) Dindaroğlu, Burak; Ertaç, SedaWe report results from a unique data set of real -life bargaining transactions collected from the market for livestock (sheep) before the Festival of Sacrifice (Eid al-Adha) in Izmir, Turkey. This market is characterized by frequent and aggressive bargaining, which occurs in the form of sequential price offers. We record bargaining transactions as they occur, and collect detailed information on the bargaining environment, as well as on the characteristics of buyers and sellers. We also elicit each seller's outside option by means of an incentive compatible mechanism and obtain a reported maximum willingness to pay from buyers. We particularly focus on aspects of the bargaining process, such as non -price communication. In different types of empirical analysis, results robustly indicate that the presence and content of communication matters, for the likelihood of a sale as well as concessions made. Specifically, buyer -side communication is associated with larger concessions from the seller and a higher probability of sale. The presence of a mediator during the negotiation is associated with a higher probability of sale as well, while it has no effect on prices. We also provide results on the relative importance of groups of variables for predicting bargaining outcomes, which can provide directions for further research in bargaining.Book Part Citation - Scopus: 1Field Experiments in Bargaining(Springer, 2022) Dindaroğlu, Burak; Ertaç, SedaUnderstanding price formation and surplus division in bargaining contexts has long been of interest to economists. Laboratory experiments contribute to our understanding of bargaining by inducing valuations and costs, which are usually unobserved in natural negotiation settings, and allow control over the negotiation process. Field experiments, on the other hand, allow economists to study bargaining in more natural contexts with higher external validity, and can be particularly useful when bargaining behavior draws on context-specific characteristics and experiences that may be stripped in lab settings or involves biases that would not surface under observability. In this chapter, we provide an overview of field experiments studying bargaining behavior and outcomes in a variety of settings, from bargaining for auto rickshaw to markets for livestock. We offer a methodological discussion, position field experiments in bargaining in the tradition of field experiments in economics at large, and highlight difficulties in the design and implementation of fieldwork for such environments. We also discuss potential areas and issues where future field experiments are of special importance for understanding price formation in bargaining. © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2022.