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 identify two features of final offer arbitration (FOA) which may impede settlement in a bargaining game where … offer in arbitration that is optimal against the entire distribution of types with whom he must bargain. Each player's offer … directly affects the outcome of arbitration under FOA, and it is this feature that generates impediments to settlement that are …

We identify two features of final offer arbitration (FOA) which may impede settlement in a bargaining game where … information about the expected outcome in arbitration from his bargaining partner. Revealing this information allows the … litigation game. Each player's offer directly affects the outcome of arbitration under FOA, and it is this feature that generates …

We develop a signaling model of final offer arbitration (FOA) in which the informed party makes the final settlement … game. Relative to a model of conventional arbitration (CA), the pure strategy separating equilibrium is associated with a …