This article explores the theoretical and behavioral impact of conventional arbitration and final-offer arbitration (FOA) when parties are bargaining over an uncertain value. In this context, one player receives a fixed payment while the other player receives the uncertain residual. Although...

Amended final-offer arbitration (AFOA) has been developed as an attractive alternative mechanism to final-offer arbitration (FOA). Under AFOA, more reasonable offers win, but the outcome is determined by the loser's offer and the arbitrator's value. In AFOA, disputants making extreme offers are...