We conduct an experimental analysis of signaling games using three models of arbitration. In the signaling model, the … informed party in the dispute makes a settlement demand to the uninformed party. In conventional arbitration (CA), the … arbitrator is free to impose her preferred settlement. In Final Offer Arbitration (FOA), each party submits a proposal to the …

We develop screening models of final offer arbitration (FOA) in which the uninformed party makes a demand to the … analyze costly discovery. Our results are compared to conventional arbitration (CA) which may viewed as a litigation model …

We develop a signaling model of final offer arbitration (FOA) in which the informed party makes the final settlement …

(1982) suggests that settlement failure stems from excessive optimism. Final offer arbitration (FOA) in major league … party making the offer. Using data from 1990-93, we find strong evidence that arbitration stems from excessive optimism by … those who lack previous experience with the arbitration process than for those who have previously been eligible …