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Gender Roles and Bargaining Behaviour: A Lab Experiment in Bangladesh

There is ample evidence of gender differences in bargaining behaviour, observed in the laboratory. One possible explanation of such behaviour is Social Role Theory (SRT) which suggests that, men and women behave differently in social situations and take different roles due to expectations that society puts upon them, that almost all behavioural differences are the result of stereotypes. The aim of the study is to examine if there are gender difference in a bargaining behaviour and if these differences can be explained by SRT in a society where perceptions of gender roles are strongly formed. A standard ultimatum game was used to observe bargaining behaviour among 222 university students in a laboratory experiment in Bangladesh. Subjects were randomly assigned to a control or treatment session; where in the latter, subjects read a small vignette about how preferences of individuals are heterogeneous and depend on a number of factors including gender. The purpose of the vignette is to prime for gender differences in behaviour. The main finding is that both men and women Responders ask for a higher MAO when they are partnered with a female Proposer, in the treatment session, after controlling for personality traits, intelligence and risk preferences. Regardless of their gender, the prime influences behaviour of both men and women in a similar manner and overpowers their initial perception (if any) about gender roles. Also, consistent with the literature, I find no significant difference in the Proposer behaviour. I conclude that there is no gender bias per se. Only when subjects are nudged or provided with additional information, they adjust their belief about the other person’s behaviour and mostly this information or signal comes from the society. So, the findings are consistent with Social Role Theory.