This article reports on an experiment concerned with a two-stage, two-person, simultaneous-demand bargaining game. The focus of analysis is on a prediction for concession behavior in the second-stage game provided by Harsanyi's “risk dominance†principle, which is at odds with the...

This paper presents a new view of the arbitration process in which the arbitrator is depicted as a random device to generate arbitration decisions. The conflicting parties must decide whether to send their dispute to the arbitrator, based on their subjective probability beliefs concerning the...