Does Fact-Finding Promote Settlement? Theory And A Test
AbstractSome labor negotiations include a break in which a non-binding recommendation is made by a fact-finder as an intermediate dispute resolution procedure. There is some uncertainty, however, as to whether this fact-finding increases or reduces the likelihood of settlement. Inasmuch as fact-finding reduces uncertainty about the outcome, it may “chill” bargaining and increase the need for additional dispute resolution procedures. On the other hand, the fact-finder’s recommendation may give the parties a focal point around which they are able to craft an agreement, thus reducing the incidence of disputes. Which of these effects dominates is a question that we consider using both a theoretical model and data from a controlled experimental bargaining environment.
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Bibliographic InfoPaper provided by Utah State University, Department of Economics in its series Working Papers with number 2002-06.
Length: 31 pages
Date of creation: Apr 2002
Date of revision:
bargaining; experiments; dispute resolution; arbitration;
Other versions of this item:
- David L. Dickinson & Lynn Hunnicutt, 2005. "Does Fact-Finding Promote Settlement? Theory and a Test," Economic Inquiry, Western Economic Association International, vol. 43(2), pages 401-416, April.
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
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- David Dickinson & Lynn Hunnicutt, 2005. "Nonbinding Suggestions: The Relative Effects of Focal Points versus Uncertainty Reduction on Bargaining Outcomes," Working Papers 05-13, Department of Economics, Appalachian State University.
- David Dickinson & Lynn Hunnicutt, 2010. "Nonbinding recommendations: the relative effects of focal points versus uncertainty reduction on bargaining outcomes," Theory and Decision, Springer, vol. 69(4), pages 615-634, October.
- Deck, Cary A. & Farmer, Amy, 2009. "Strategic bidding and investments in final offer arbitration: Theory and experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 361-373, May.
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