This paper presents results from a controlled laboratory study of bargaining behavior and dispute rates under three types of arbitration procedures. Two of these—conventional and final-offer arbitration—are commonly used in practice, while an innovative procedure called “Combined...

There has been growing interest within the economics discipline in the role of equity concerns in the distribution of resources. This paper presents empirical evidence from a series of controlled laboratory experiments where third-party decision-makers must allocate resources between two...

Some labor negotiations include a break in which a non-binding recommendation is made by a fact-finder as an intermediate dispute resolution procedure. There is some uncertainty, however, as to whether this fact-finding increases or reduces the likelihood of settlement. Inasmuch as fact-finding...

Binding arbitration is a common method of alternative dispute resolution used in resolving labor disputes. Two different forms of binding arbitration dominate in practice: conventional arbitration (CA) and final offer arbitration (FOA). In CA, the arbitrator is allowed to choose any settlement...