Publication Date: August 2017
We study the division of trade surplus in a natural ﬁeld experiment on German eBay. Acting as a seller, we oﬀer Amazon gift cards with face values of up to 500 Euro. A random selection of buyers, the subjects of our experiment, make price oﬀers according to the rules of eBay. Using a novel decomposition method, we infer the oﬀered shares of trade surplus from the data and ﬁnd that the average share proposed to the seller amounts to about $30 \%$. Additionally, we document: (i) insigniﬁcant eﬀects of stake size; (ii) poor use of strategically relevant public information; and (iii) diﬀerences between East and West German subjects.
Field experiment, Surplus division, Bargaining, Internet trade, eBay
JEL Classification Codes: C72, C93, C57