This paper utilizes a unique data set to explore whether uncertainty about arbitration influences the likelihood that negotiators use it. We use experimental data on decisions made by arbitrators in hypothetical scenarios to calculate a measure of uncertainty for each arbitrator. These data are...

In subjective expected utility (SEU) the decision weights people attach to events are their beliefs about the likelihood of events. Much empirical evidence, inspired by Ellsberg (1961) and others, shows that people prefer to bet on events they know more about, even when their beliefs are held...

Two related trends have created novel challenges for managing risk in the United States. The first trend is a series of dramatic changes in liability law as tort law has expanded to assign liability to defendants for reasons other than negligence. The unpredictability of future costs induced by...