Event summary

Short Bio: Diogo Geraldes is an Assistant Professor (Above the Bar) at the UCD School of Economics, a Research Fellow at the Geary Institute for Public Policy, and a Researcher at the Science of Diversity & Inclusion Initiative (SODI). Diogo’s main research interests lie in the fields of Behavioral Economics, Experimental Economics, and Game Theory. Before arriving in beautiful Dublin, Diogo’s academic path navigated through Lisboa (Nova SBE), Barcelona (Pompeu Fabra University), New York (Columbia University), Maastricht University, and Utrecht University.

Abstract: Experimental evidence from different subject pools shows that men earn more than women in majoritarian negotiations. Three stylized modes of behavior emerge as potential reasons for the gap: men sort into making opening offers more often, prefer to partner with other men, and when partnering with each other, their coalitions are more stable compared to mixed-gender ones. We design three experimental interventions to investigate the explanatory role each channel plays in the emergence of the gap and, consequently, provide potential solutions. We find that enabling everyone to simultaneously make an initial proposal does not close the earnings gap, if anything, it weakly grows in magnitude. Hiding gender eliminates bias in coalition partner choice, alters bargaining dynamics, and equalizes mean earnings. Finally, allowing for instantly-binding agreements in bargaining closes the gap, not only because mixed-gender coalitions become more stable, but also because women become preferred partners. Our results highlight how the attributes of the negotiation environment interact with gender, and suggest that the design of bargaining institutions can be leveraged to promote gender equity.

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