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Hometown-specific Bargaining Power in an Experimental Market in China

Xiangdong Qin, Junyi Shen, Ken-Ichi Shimomura and Takehiko Yamato
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Xiangdong Qin: School of Economics, Shanghai Jiao Tong University, China
Takehiko Yamato: Department of Social Engineering, Graduate School of Decision Science and Technology, Tokyo Institute of Technology, Japan

No DP2013-28, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: We conducted a market experiment in China to examine potential effects of subjects’ hometowns on their behaviors as well as potential differences between team and individual trades. We observed that group size affected bargaining power and subsequently payoffs in different directions according to where the subjects were from. This finding suggests that it is important to take one’s hometown into account when comparing economic behavior or decision-making between teams and individuals, especially in the countries or regions where hometown diversity plays a central role in explaining differences in business management and local market performance.

Keywords: Hometown; Market experiment; Team trade; Individual trade; China (search for similar items in EconPapers)
JEL-codes: C91 C92 D51 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2013-10, Revised 2016-01
New Economics Papers: this item is included in nep-cbe, nep-cdm and nep-exp
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Downloads: (external link) Revised version, 2016 (application/pdf)

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