The Relative Bargaining Power Of Spouses Essay example

The Relative Bargaining Power Of Spouses Essay example

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According to Orsini & Spadaro (2005) the relative bargaining power of spouses can determine each spouse’s share of the available resources. Individuals exercise agency in order to maximize their benefits. This agency is necessarily bounded by the social institution that determines resource sharing (Slootmaker, 2013). In our experiment, this social institution is a resource sharing game in which husbands and wives are asked to divide an amount of money between themselves and their partners. The amount is 100 Ethiopian birr (ETB), which is equivalent to the daily milk income in market participant households. In our game there are two roles, (1) proposing how to share the amount between themselves and their spouse, and (2) indicating how much one expects to receive from the spouse. It is only when the proposals and the expectation of the spouses coincide, that the couple wins the game and receives the amount indicated in the game (plus a show up fee), otherwise they loose but get their show up fee.
The assumption behind this game is that the amounts proposed or expected depend on the perception of the players regarding their own and their partner’s bargaining power. This is because whether the spouses have accurate expectations of each other’s behavior in an experiment can be an important indicator of their actual positions (Kebedea et al., 2014). The incentive of winning the game is supposed to control for other potential factors that influence sharing behaviors, like generosity, fairness, or togetherness and force the player to critically predict the bargaining position of the other party. Kebedea et al (2014) indicated that spouses who have better remarriage potential transfer less to their partner in Ethiopia, implying that indi...

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...has a well-defined objective function, and interact to generate household level decisions. In this case husband and wife are supposed to make financial decisions on the basis of consensus. However, in the current study this option was not possible because we forced the players to either benefit themselves or their spouse with the aim to rule out perfect fairness.
The third situation is mostly in line with many bargaining models. Husband and wife use their bargaining power in sharing the experimental endowments and any ratio that ranges between 0 and 0.5 indicates lower individual bargaining power while a ratio between 0.5 and 1 indicates better individual bargaining power.
The ratio of the women`s bargaining index to the men`s bargaining index can be seen as a summary index for women`s relative intra-household bargaining position. The higher this ratio, the higher

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