Final-offer arbitration (FOA) is a widely used binding dispute resolution mechanism, where an impartial arbitrator is constrained to choose one of the two final offers pro- posed by two disputing parties. We build an equilibrium model of FOA with agents averse to arbitral uncertainty to study...

Agents on a network experiment repeatedly, and simultaneously with the aim of choosing the optimal (uncertain) action between two alternatives. If each agent is forward looking and rational and observes the behavior only of those in his reference group, could different opinions emerge...