This paper reports laboratory experiments comparing arbitration behavior between and across two countries with extensive trade relations, the United States and Japan. Besides comparing disputes in both locations, we evaluate disputes between them. While we find nominal differences between the...

Arbitration is increasingly employed to resolve disputes. Two arbitration mechanisms, conventional arbitration (CA) and final-offer arbitration (FOA) are commonly utilized, but previous theoretical and empirical research has found that they are unsatisfactory. Several alternative mechanisms have...

Given the sizeable savings, many disputes are resolved via arbitration. Numerous studies have considered the strategic incentives of various forms of arbitration, most notably final offer arbitration (FOA). While previous work focused exclusively on optimal offers, in reality disputants make a...

<title>Abstract</title> Technological advances enable sellers to identify relationships among offered goods. Sellers can leverage this information through pricing strategies such as bundling and sequential pricing. While these strategies have primarily been studied under monopoly assumptions, the strategies...

Arbitration outcomes are uncertain. When risk preferences are unobservable, players may make offers that attempt to extract the willingness of risk-averse bargaining partners to pay to avoid the uncertainties of arbitration. When such a “hard†offer is made to a risk-neutral bargaining...

This paper surveys the growing literature on the home market effects (HMEs) in spatial economics. The HMEs are utilized to disclose the role of country size in the configuration of economic activity. Various HMEs display distinctive features of size advantage and they are originally obtained...

In the literature of new trade theory, most papers study the industrial location by imposing the assumption of free transportation in the agricultural sector. This paper explicitly incorporates arbitrary transport costs in both the manufacturing and the agricultural sectors into the...

In this paper, we explore the interaction between taxation and a local public good (LPG) to see how it impacts the spatial pattern in the framework of new economic geography (NEG). In the benchmark case of a pure LPG, the system displays a similar location pattern to the existing NEG taxation...

We examine how the spatial economy with multiple industries is shaped when interregional trade costs and intraregional commuting costs are low. All industries are characterized by increasing returns to scale and monopolistic competition, and they are differentiated by their trade costs and the...