Coverart for item
The Resource Nonbinding Suggestions and Dispute Rates: Uncertainty, Focal Points, and their Effects on Bargaining Outcomes

Nonbinding Suggestions and Dispute Rates: Uncertainty, Focal Points, and their Effects on Bargaining Outcomes

Label
Nonbinding Suggestions and Dispute Rates: Uncertainty, Focal Points, and their Effects on Bargaining Outcomes
Title
Nonbinding Suggestions and Dispute Rates: Uncertainty, Focal Points, and their Effects on Bargaining Outcomes
Creator
Contributor
Author
Contributor
Subject
Genre
Summary
This paper focuses on the effects of nonbinding recommendations on bargaining outcomes. Recommendations are theorized to have two effects: they can create a focal point for final bargaining positions, and they can decrease outcome uncertainty should dispute persist. While the focal point effect may help lower dispute rates, the uncertainty reduction effect is predicted to do the opposite for risk-averse bargainers. Which of these effects dominates is of critical importance in the optimal design of alternative dispute resolution (ADR) procedures, which are becoming increasingly utilized to help resolve disputes in a variety of settings. We theoretically examine the effects of recommendations on the bargaining contract zone. Our theoretical framework, which allows bargainers' final positions to influence a binding outcome should negotiations fail, provides for a more stringent test of focal points than previously considered. We also present data from controlled laboratory bargaining experiments that are consistent with our model of recommendation effects. Recommendations are empirically shown to influence final bargaining positions and negotiated settlement values. Furthermore, dispute rates are significantly lower when one includes recommendations, even where the recommendation is completely ignored in final-stage arbitration. This highlights a potentially significant role for the use of nonbinding procedures, such as mediation, as a preliminary stage in developing more efficient ADR procedures
http://library.link/vocab/creatorName
  • Dickinson, David
  • Inter-university Consortium for Political and Social Research [distributor]
http://library.link/vocab/relatedWorkOrContributorName
Hunnicutt, Lynn
Label
Nonbinding Suggestions and Dispute Rates: Uncertainty, Focal Points, and their Effects on Bargaining Outcomes
Instantiates
Publication
Note
  • 2000-09--2003-10
  • 25323
Control code
ICPSR25323.v1
Governing access note
Access restricted to subscribing institutions
Label
Nonbinding Suggestions and Dispute Rates: Uncertainty, Focal Points, and their Effects on Bargaining Outcomes
Publication
Note
  • 2000-09--2003-10
  • 25323
Control code
ICPSR25323.v1
Governing access note
Access restricted to subscribing institutions

Library Locations

    • Ladd LibraryBorrow it
      48 Campus Ave, Lewiston, ME, 04240, US
      44.105245 -70.203443
Processing Feedback ...