Intermediaries in Bargaining: Evidence from Business-to-Business Used-Car Inventory Negotiations /
Larsen, Bradley.
Intermediaries in Bargaining: Evidence from Business-to-Business Used-Car Inventory Negotiations / Bradley Larsen, Carol Hengheng Lu, Anthony Lee Zhang. - Cambridge, Mass. National Bureau of Economic Research 2021. - 1 online resource: illustrations (black and white); - NBER working paper series no. w29159 . - Working Paper Series (National Bureau of Economic Research) no. w29159. .
August 2021.
We analyze data on tens of thousands of alternating-offer, business-to-business negotiations in the wholesale used-car market, with each negotiation mediated (over the phone) by a third-party company. The data shows the identity of the employee mediating the negotiations. We find that who intermediates the negotiation matters: high-performing mediators are 22.03% more likely to close a deal than low performers. Effective mediators improve bargaining outcomes by helping buyers and sellers come to agreements faster, not by pushing disagreeing parties to persist, and have real effects on efficiency for some negotiations, overcoming some of the inefficiency inherent in incomplete-information settings.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Intermediaries in Bargaining: Evidence from Business-to-Business Used-Car Inventory Negotiations / Bradley Larsen, Carol Hengheng Lu, Anthony Lee Zhang. - Cambridge, Mass. National Bureau of Economic Research 2021. - 1 online resource: illustrations (black and white); - NBER working paper series no. w29159 . - Working Paper Series (National Bureau of Economic Research) no. w29159. .
August 2021.
We analyze data on tens of thousands of alternating-offer, business-to-business negotiations in the wholesale used-car market, with each negotiation mediated (over the phone) by a third-party company. The data shows the identity of the employee mediating the negotiations. We find that who intermediates the negotiation matters: high-performing mediators are 22.03% more likely to close a deal than low performers. Effective mediators improve bargaining outcomes by helping buyers and sellers come to agreements faster, not by pushing disagreeing parties to persist, and have real effects on efficiency for some negotiations, overcoming some of the inefficiency inherent in incomplete-information settings.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.