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Title: Disparities in Complex Price Negotiations: The Role of Consumer Age and Gender

Citation Type: Miscellaneous

Publication Year: 2015

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Abstract: Although negotiated prices in consumer markets are rare in North America today, two important exceptionshousing and automobilesmake up the biggest purchases in most consumers lives. Negotiated prices in these markets create the possibility of large disparities in outcomes among consumers and we establish that, in the new car market, there is huge variation in final transaction prices. We show that average differences between demographic groups explains at least 20% of this variation. Our results suggest that the complex nature of vehicle transactions leads to price dispersion in this market. Older consumers perform worse in new car negotiations, even after controlling for all observable aspects of the transaction, and the age premium is greater for women than for men. We then show that the worst performing groups are also the least likely to participate in this market.

Url: http://home.uchicago.edu/~sallee/usgenderpaper.pdf

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Authors: Chandra, Ambarish; Gulati, Sumeet; Sallee, James M

Publisher: University of Toronto

Data Collections: IPUMS CPS

Topics: Other

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