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.This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.