Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/56892 
Year of Publication: 
2011
Series/Report no.: 
Jena Economic Research Papers No. 2011,043
Publisher: 
Friedrich Schiller University Jena and Max Planck Institute of Economics, Jena
Abstract: 
We experimentally study the inuence of induced group identity on the determination of prices and beliefs in a small market game. We create group identity through a focal point coordination game. Subjects play a three-person bargaining game where one seller can sell an indivisible good to one of two competing buyers under four different treatments varying the buyer-seller constellation. We find evidence of in group favoritism on the buyer side. However we do not detect a lower ask prices for in-group sellers for in-group buyers, indicating that in-group favoritism is in favor of the more powerful market participan.
Subjects: 
group identity
experiments
markets
bargaining
JEL: 
C91
D45
L13
L14
Document Type: 
Working Paper

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