%0 Generic
%A Oechssler, Jörg
%A Roider, Andreas
%A Schmitz, Patrick W.
%D 2008
%F heidok:9464
%K negotiations ,  ultimatum game ,  emotions ,  cooling-off ,  cognitive abilities , behavioral biases ,  internet experiment 
%R 10.11588/heidok.00009464
%T Cooling-Off in Negotiations - Does It Work?
%U https://archiv.ub.uni-heidelberg.de/volltextserver/9464/
%X 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.