Kanagaretnam, Kiridaran; Mestelman, Stuart; Nainar, Khalid - Department of Economics, McMaster University - 2009
with the right to veto the investee’s profit distribution decision on the level of trust and trustworthiness. One of the … over 30% in both cases. Interestingly, we observe a comparable pattern when the power to veto is removed. Analyses of veto … veto and that the veto decisions are largely driven by unfair responses, consistent with the theory on inequity aversion. …