We identify two features of final offer arbitration (FOA) which may impede settlement in a bargaining game where asymmetric information drives the failure to settle. First, under FOA the informed party has an incentive not to voluntarily reveal private information. Revealing this information...

We introduce fairness into three models of pretrial settlement and find that it increases the incidence of trial in each. This is true despite the fact that the fairness taste parameter is common knowledge. In the standard model, the party who makes the final offer can extract essentially all of...

We identify two features of final offer arbitration (FOA) which may impede settlement in a bargaining game where asymmetric information drives the failure to settle. First, under FOA, the informed party has an incentive to conceal private information about the expected outcome in arbitration...