NBER Working Papers and Publications
|November 1984||The General Basis of Arbitrator Behavior: An Empirical Analysis of Conventional and Final-Offer Arbitration|
with Henry S. Farber: w1488
A general model of arbitrator behavior in conventional and final-offer arbitration is developed that is based on an underlying notion of an appropriate award in a particular case. This appropriate award is defined as a function of the facts of the case independently of the offers of the parties. In conventional arbitration the arbitration award is argued to be a function of both the offers of the parties and the appropriate award. The weight that the arbitrator puts on the appropriate award relative to the offers is hypothesized to be a function of the quality of the offers as measured by the difference between the offers. In final-offer arbitration itis argued that the arbitrator chooses the offer that is closest to the appropriate award.The model is implemented empirically using data gat...
- Econometrica, Vol. 54, No. 4, pp. 819-844, July 1986. (partial due to printing error)
- Econometrica Vol. 54, No. 6, November 1986, pp. 1503-1528. (full text)