Cooling-off in negotiations: does it work?
Negotiations frequently end in conflict after one party rejects a final offer. In a large-scale internet experiment, we investigate whether a 24-hour cooling-off period leads to fewer rejections in ultimatum bargaining. We conduct a standard cash treatment and a lottery treatment, where subjects rec...
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| Other Authors: | , , |
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| Format: | Book/Monograph Working Paper |
| Language: | English |
| Published: |
Mannheim
Univ. Mannheim, Sonderforschungsbereich 504
April 16, 2008
Heidelberg Universitätsbibliothek der Universität Heidelberg April 16, 2008 Heidelberg University of Heidelberg, Department of Economics April 16, 2008 |
| Series: | Discussion paper series / Universität Heidelberg, Department of Economics
no. 463 Discussion Paper Series / Universität <Heidelberg> / Department of Economics 463 |
| In: |
Discussion paper series (no. 463)
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| Subjects: | |
| Online Access: | Resolving-System, kostenfrei, Volltext: http://nbn-resolving.de/urn:nbn:de:bsz:180-madoc-20715 Resolving-System, kostenfrei, Volltext: http://nbn-resolving.de/urn:nbn:de:bsz:16-opus-94641 Verlag, Volltext: http://www.awi.uni-heidelberg.de/with2/Discussion%20papers/papers/dp463.pdf Resolving-System, Volltext: http://hdl.handle.net/10419/127281 
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| Author Notes: | Jörg Oechssler; Andreas Roider; Patrick W. Schmitz |
MARC
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| 520 | |a Negotiations frequently end in conflict after one party rejects a final offer. In a large-scale internet experiment, we investigate whether a 24-hour cooling-off period leads to fewer rejections in ultimatum bargaining. We conduct a standard cash treatment and a lottery treatment, where subjects receive lottery tickets for several large prizes - emulating a high-stakes environment. In the lottery treatment, unfair offers are less frequently rejected, and cooling-off significantly reduces the rejection rate further. In the cash treatment, rejections are more frequent and remain so after cooling-off. This treatment difference is particularly pronounced for subjects with lower cognitive abilities. | ||
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