Intermediaries in Bargaining: Evidence from Business-to-Business Used-Car Inventory Negotiations / Bradley Larsen, Carol Hengheng Lu, Anthony Lee Zhang.

By:

Larsen, Bradley

Contributor(s):

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w29159.Publication details: Cambridge, Mass. National Bureau of Economic Research 2021.Description: 1 online resource: illustrations (black and white)Subject(s):

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: 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.

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w29159 (Browse shelf(Opens below))	Not For Loan

Total holds: 0

Collection: Colección NBER Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	nber w29156 The Revealed Preferences for School Reopening: Evidence from Public-School Disenrollment /	nber w29157 Shifting Punishment on Minorities: Experimental Evidence of Scapegoating /	nber w29158 Mr. Keynes and the “Classics”; A Suggested Reinterpretation /	nber w29159 Intermediaries in Bargaining: Evidence from Business-to-Business Used-Car Inventory Negotiations /	nber w2916 Strategic Trade Policy When Domestic Firms Compete Against Vertically Integrated Rivals /	nber w29160 Corrective Regulation with Imperfect Instruments /	nber w29161 Demographics, Wealth, and Global Imbalances in the Twenty-First Century /	Next

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.