An Economic Analysis of Final-Offer Arbitration as a Conflict Resolution Device

Author:

Chelius James R.1,Dworkin James B.1

Affiliation:

1. Krannert Graduate School of Management Purdue University

Abstract

The purpose of this article is to examine the impact of the availability of final-offer arbitration on the collective bargaining process and its outcomes. If this technique is to act as an effective strike substitute, it should provide bargainers with incentives to negotiate agreements bilaterally and should distribute bargaining power in much the same manner as would the right to strike. Empirical evidence is provided to evaluate the operation of final-offer arbitration in terms of these attributes. On the basis of this evidence, it would appear that policy-makers should consider final-offer arbitration as an alternative device for resolving conflicts.

Publisher

SAGE Publications

Subject

Political Science and International Relations,Sociology and Political Science,General Business, Management and Accounting

Reference21 articles.

1. Dworkin, J. (1976) "The impact of final-offer interest arbitration on bargaining: the case of major league baseball," pp. 161-169 in Proceedings of the Twenty-Ninth Annual Winter Meeting of the Industrial Relations Research Association.

2. An Economic Model of a Professional Sports League

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