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

Author

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  • James R. Chelius

    (Krannert Graduate School of Management Purdue University)

  • James B. Dworkin

    (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.

Suggested Citation

  • James R. Chelius & James B. Dworkin, 1980. "An Economic Analysis of Final-Offer Arbitration as a Conflict Resolution Device," Journal of Conflict Resolution, Peace Science Society (International), vol. 24(2), pages 293-310, June.
    • Handle: RePEc:sae:jocore:v:24:y:1980:i:2:p:293-310
    DOI: 10.1177/002200278002400208
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    References listed on IDEAS

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    1. Scully, Gerald W, 1974. "Pay and Performance in Major League Baseball," American Economic Review, American Economic Association, vol. 64(6), pages 915-930, December.
    2. Simon Rottenberg, 1956. "The Baseball Players' Labor Market," Journal of Political Economy, University of Chicago Press, vol. 64(3), pages 242-242.
    3. El-Hodiri, Mohamed & Quirk, James, 1971. "An Economic Model of a Professional Sports League," Journal of Political Economy, University of Chicago Press, vol. 79(6), pages 1302-1319, Nov.-Dec..
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    Cited by:

    1. Jennifer K. Ashcraft & Craig A. Depken, 2020. "The introduction of the reserve clause in Major League Baseball: evidence of its impact on select player salaries during the 1880s," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 14(1), pages 105-128, January.
    2. AC. Krautmann & E. Gustafson & L. Hadley, 2000. "Who pays for minor league training costs?," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 37-47, January.
    3. Bhaduri Anik & Barbier Edward B, 2008. "Political Altruism of Transboundary Water Sharing," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-30, August.
    4. John W. Budd & Aaron Sojourner & Jaewoo Jung, 2017. "Are Voluntary Agreements Better? Evidence from Baseball Arbitration," ILR Review, Cornell University, ILR School, vol. 70(4), pages 865-893, August.

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