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Experimental comparison of compulsory and non compulsory arbitration mechanisms

Author

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  • Eric Guerci

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

  • Sylvie Thoron

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

Abstract

We run a series of experiments to compare the well known arbitration scheme FOA (Final Offer Arbitration) with a new arbitration scheme, non compulsory, we proposed in a companion paper (Tanimura and Thoron (2008)): ROC (Recursive Offer Conciliation). The two mechanisms are also compared with a negotiation without arbitration. We observe that the ROC mechanism seems to cumulate the advantages of the two other procedures, it avoids the high frequency of impasses observed under the FOA procedure and it is as efficient as the Free procedure in this respect. Furthermore, in an asymmetric treatment, it helps the subjects to find an agreement around the equal split of the surplus, like the arbitrator of the FOA procedure does, but without imposing anything on them.

Suggested Citation

  • Eric Guerci & Sylvie Thoron, 2011. "Experimental comparison of compulsory and non compulsory arbitration mechanisms," Working Papers halshs-00584328, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00584328
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00584328
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    References listed on IDEAS

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