RISK AVERSION AND NEGOTIATOR BEHAVIOR IN PUBLIC SECTOR ARBITRATION

STEVE H. BARR


DOI: 10.2190/KBVQ-BK0K-U1K2-UAAV

Abstract

In 1980, a relationship was proposed between risk and negotiator actions in the final offer arbitration process. This article examined such a hypothesis and also investigated the joint effects of risk and the form of arbitration procedures on final offers tendered in an arbitration situation. The effects of propensity toward risk and the form of arbitration procedure on final offers were examined in a public sector bargaining simulation. Results indicate strong support for the influence of risk on reasonableness of final offer positions. Significant differences were noted for risk avoiders and risk takers.

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