EconPapers    
Economics at your fingertips  
 

Cooling-Off in Negotiations - Does It Work?

Patrick Schmitz, Andreas Roider and Jörg Oechssler

No 6807, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: 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 received 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.

Keywords: Behavioural biases; Cognitive abilities; Cooling-off; Emotions; Internet experiment; Negotiations; Ultimatum game (search for similar items in EconPapers)
JEL-codes: C78 C99 D8 (search for similar items in EconPapers)
Date: 2008-04
New Economics Papers: this item is included in nep-exp
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
https://cepr.org/publications/DP6807 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Cooling Off in Negotiations: Does it Work? (2015) Downloads
Working Paper: Cooling-Off in Negotiations - Does It Work? (2009) Downloads
Working Paper: Cooling-Off in Negotiations - Does It Work? (2008) Downloads
Working Paper: Cooling-Off in Negotiations - Does It Work? (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:6807

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP6807
orders@cepr.org

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by (repec@cepr.org).

 
Page updated 2025-01-10
Handle: RePEc:cpr:ceprdp:6807