Study of Final-Offer Arbitration

Summary

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A study by two University of Arkansas professors demonstrates that when the parties' proposals are made known to the adversary during the course of final-offer arbitration, the parties end up spending less money to resolve their dispute. The purpose of the study was to determine whether structuring final-offer arbitration in different ways would have an effect on the efficiency and cost of the process. The study examined final-offer arbitration in four scenarios, each one structured in a different way. The authors found that the parties submitted more reasonable offers when they knew that their proposals would be disclosed to each other. When this was not the case, the parties' proposals were more extreme or aggressive.

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Study of Final-Offer Arbitration

A study by two University of Arkansas professors demonstrates that when the parties' proposals are made known to the adversary during the cours...

See the full content of this document

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