Pawn Stars: Putting Theories of Negotiation to the Test

29 Pages Posted: 22 Jun 2012

See all articles by Bryan C. McCannon

Bryan C. McCannon

Illinois Wesleyan University

John Stevens

Saint Bonaventure University

Date Written: June 22, 2012

Abstract

Management science and economic theories of negotiations are tested using a unique data set. The History Channel television show Pawn Stars portrays many negotiations between customers and workers of a pawn shop. This provides a unique data set not typically available to researchers as the tactics of bargaining can be observed, recorded, and analyzed. Many, but not all, of the primary theories developed receive empirical support. The use of experts, experience, the gap between the initial offers, and the use of final offers all affect the likelihood of a deal being made as well as the division of the surplus. The party making the opening offer suffers a disadvantage, which stands in contrast to predictions of sequential bargaining and anchoring effects.

Keywords: asymmetric information, bargaining, experts, final offer, negotiation, Pawn Stars

JEL Classification: C78, D82

Suggested Citation

McCannon, Bryan C. and Stevens, John, Pawn Stars: Putting Theories of Negotiation to the Test (June 22, 2012). Available at SSRN: https://ssrn.com/abstract=2089515 or http://dx.doi.org/10.2139/ssrn.2089515

Bryan C. McCannon (Contact Author)

Illinois Wesleyan University ( email )

P.O. Box 2900
Bloomington, IL 61702-2900
United States

HOME PAGE: http://sites.google.com/site/bryancmccannon

John Stevens

Saint Bonaventure University ( email )

Saint Bonaventure, NY 14778
United States

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