Fairness like other social norms is usually stabilized by punishing norm deviations. Reward uncertainty, however,questions whether norm deviations can be detected and thus punished. By investing in information acquisition, aresponder in an ultimatum experiment determines endogenously whether...

By vetoing one questions 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...