Amended final-offer arbitration (AFOA) has been developed as an attractive alternative mechanism to final …-offer arbitration (FOA). Under AFOA, more reasonable offers win, but the outcome is determined by the loser's offer and the arbitrator …

We test for the presence of an addictive effect of arbitration (positive state dependence) using data both from a … laboratory bargaining experiment and from the field. We find no evidence of state dependence in the experimental data, and we … view that use of arbitration per se leads to state dependence either through reducing uncertainty about the arbitral …