Communication Architecture Affects Gender Differences in Negotiation

47 Pages Posted: 17 May 2023

See all articles by Adam Eric Greenberg

Adam Eric Greenberg

Bocconi University - Department of Marketing

Ragan Petrie

Texas A&M University - Department of Economics; University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Date Written: April 28, 2023

Abstract

Women tend to face worse outcomes than men in negotiations, and this may partially explain the observed gender wage gap. Most prior work documenting the gender earnings gap in negotiations has focused on settings in which negotiations were conducted face-to-face. Given the prevalence of alternative methods of communication such as chat, phone calls, and video calls in the workplace, we examine the extent of the gender earnings gap in virtual settings where negotiation is required. Using incentivized experiments, we test how the architecture of virtual communication affects the presence and extent of gender differences in negotiation outcomes. When the architecture reveals gender (i.e., through image or voice), women earn 5.3% less than men. However, when the architecture obscures gender (i.e., in fully anonymous chat), there is no gender earnings gap, yet this outcome occurs at an efficiency loss.

Keywords: negotiation, gender earnings gap, communication architecture, unstructured bargaining

JEL Classification: J16, C78, C91

Suggested Citation

Greenberg, Adam Eric and Petrie, Ragan, Communication Architecture Affects Gender Differences in Negotiation (April 28, 2023). Available at SSRN: https://ssrn.com/abstract=4443330 or http://dx.doi.org/10.2139/ssrn.4443330

Adam Eric Greenberg

Bocconi University - Department of Marketing ( email )

Via Roentgen, 1 (4th floor)
Milan, MI 20136
Italy

Ragan Petrie (Contact Author)

Texas A&M University - Department of Economics ( email )

4228 TAMU
College Station, TX 77843-4228
United States

HOME PAGE: http://www.raganpetrie.org/

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

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