In a veto game, we investigate the effects of "buyout" which allows non-veto players strategically form an intermediate coalition. We report two main experimental findings in this paper. First, the frequency of intermediate coalition formation is much lower than predicted by theory, regardless...

We consider a scenario where a single indivisible object is auctioned off to three bidders and among the three bidders there is one bidder whose winning imposes a positive or negative externality on the other two bidders. We theoretically and experimentally compare two standard sealed-bid...