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Why do people veto? An experimental analysis of the evaluation and the consequences of varying degrees of veto power

Author

Listed:
  • Werner G³th

    (Max Planck Institute for Research into Economic Systems, Strategic Interaction Unit, Jena, Germany)

  • Judit Kovßcs

    (Institute pf Phycholoy, University of Debrecen, Debrecen, Hungary)

Abstract
By vetoing one question mutually efficient agreements. On the other hand, the threat of vetoing may prevent exploitation. Based on a generalization of ultimatum bargaining (Suleiman, 1996), we first elicit the responders' certainty equivalents for three different degrees of veto power. Afterwards the corresponding bargaining rule is implemented. The experimental data reveal that proposers are afraid of more veto power, and that responders only care about commanding veto power but not its degree.

Suggested Citation

  • Werner G³th & Judit Kovßcs, 2001. "Why do people veto? An experimental analysis of the evaluation and the consequences of varying degrees of veto power," Homo Oeconomicus, Institute of SocioEconomics, vol. 18, pages 277-302.
    • Handle: RePEc:hom:homoec:v:18:y:2001:p:277-302
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    References listed on IDEAS

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    Cited by:

    1. Werner Güth & Radosveta Ivanova‐Stenzel & Sigve Tjotta, 2004. "Please, Marry Me! An Experimental Study of Risking a Joint Venture," Metroeconomica, Wiley Blackwell, vol. 55(1), pages 1-21, February.

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