Fairness Preferences in a Bilateral Trade Experiment
Is the willingness to make trades influenced by how the total gains from trade are split between the trading partners? We present results from a bilateral trade game (<i>n</i> = 128) where all participants were price-takers and trading pairs faced one of three exogenously imposed trading...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2020-01-01
|
| Series: | Games |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2073-4336/11/1/8 |
| _version_ | 1818325038519025664 |
|---|---|
| author | Alice Ciccone Ole Rogeberg Ragnhild Braaten |
| author_facet | Alice Ciccone Ole Rogeberg Ragnhild Braaten |
| author_sort | Alice Ciccone |
| collection | DOAJ |
| description | Is the willingness to make trades influenced by how the total gains from trade are split between the trading partners? We present results from a bilateral trade game (<i>n</i> = 128) where all participants were price-takers and trading pairs faced one of three exogenously imposed trading prices. The fixed prices divided the gains either symmetrically in the reference treatment or asymmetrically in treatments favoring either the buyer or seller. Price treatments generating asymmetric gains from trade reduced desired transaction levels on both sides of the market, but more strongly by the disfavored party. The data weakly indicated a larger reduction when the disfavored party was a seller. |
| first_indexed | 2024-12-13T11:38:08Z |
| format | Article |
| id | doaj.art-59fe9de10e24418ca3c9bcac8f048a33 |
| institution | Directory Open Access Journal |
| issn | 2073-4336 |
| language | English |
| last_indexed | 2024-12-13T11:38:08Z |
| publishDate | 2020-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Games |
| spelling | doaj.art-59fe9de10e24418ca3c9bcac8f048a332022-12-21T23:47:44ZengMDPI AGGames2073-43362020-01-01111810.3390/g11010008g11010008Fairness Preferences in a Bilateral Trade ExperimentAlice Ciccone0Ole Rogeberg1Ragnhild Braaten2Institute of Transport Economics (TØI), Gaustadalléen 21, 0349 Oslo, NorwayCREE Frisch Centre, Gaustadalléen 21, 0349 Oslo, NorwayOslo Economics, 0349 Oslo, NorwayIs the willingness to make trades influenced by how the total gains from trade are split between the trading partners? We present results from a bilateral trade game (<i>n</i> = 128) where all participants were price-takers and trading pairs faced one of three exogenously imposed trading prices. The fixed prices divided the gains either symmetrically in the reference treatment or asymmetrically in treatments favoring either the buyer or seller. Price treatments generating asymmetric gains from trade reduced desired transaction levels on both sides of the market, but more strongly by the disfavored party. The data weakly indicated a larger reduction when the disfavored party was a seller.https://www.mdpi.com/2073-4336/11/1/8fairnessinequality aversiontrademarketsexperimentsocial preferences |
| spellingShingle | Alice Ciccone Ole Rogeberg Ragnhild Braaten Fairness Preferences in a Bilateral Trade Experiment Games fairness inequality aversion trade markets experiment social preferences |
| title | Fairness Preferences in a Bilateral Trade Experiment |
| title_full | Fairness Preferences in a Bilateral Trade Experiment |
| title_fullStr | Fairness Preferences in a Bilateral Trade Experiment |
| title_full_unstemmed | Fairness Preferences in a Bilateral Trade Experiment |
| title_short | Fairness Preferences in a Bilateral Trade Experiment |
| title_sort | fairness preferences in a bilateral trade experiment |
| topic | fairness inequality aversion trade markets experiment social preferences |
| url | https://www.mdpi.com/2073-4336/11/1/8 |
| work_keys_str_mv | AT aliceciccone fairnesspreferencesinabilateraltradeexperiment AT olerogeberg fairnesspreferencesinabilateraltradeexperiment AT ragnhildbraaten fairnesspreferencesinabilateraltradeexperiment |