The Impact of Compulsory Arbitration on Bargaining Behavior: An Experimental Study

A series of experiments compares bargaining behavior under three different settings: no arbitration, conventional and final-offer arbitration. Under no arbitration, disputes with zero payoffs were around 10%, while the pie was equally split in less than half of the cases. Under conventional arbitration – where the arbitrator is free to choose his award – every third negotiation ended in dispute, evidencing a modified chilling effect. Under final-offer arbitration – where the arbitrator must award the bargainers either one of their final offers – there was only a small increase in disputes, while equal splits doubled to 80%. The experiment shows that final-offer arbitration, despite having lower dispute rates, interferes more with bargaining behavior than conventional arbitration, where bargaining behavior is similar to that seen in the no-arbitration treatment. Under final-offer arbitration, negotiators adjust their bargaining strategy on the arbitrator’s expected award.     

Endogenous elites: power structure and patron-client relationships

In weak institutional settings, autocrats barter political and economic concessions for support to remain in power and extract rents. Instead of viewing the favors’ beneficiaries, i.e. the elites, as an exogenous entity, we allow the king to decide whom to coopt provided the subjects are heterogeneous in the potential support—their strength—they could bring to the regime. While the ruler can select the elites on the basis of their personal characteristics, an alternative strategy consists in introducing some uncertainty in the cooptation process. The latter strategy allows the king to reduce the clients’ cooptation price since in the event of a revolution the likelihood of being included in the future body of elites is lower. We show that weak rulers are more likely to coopt the society’s strongest individuals, while powerful rulers diversify the composition of their clientele. Moreover, when agents value more future discounted outcomes, the king is more likely to randomly coopt subjects.     

A multi-agent-based model for a negotiation support system in electronic commerce

This study proposes a multi-agent-based model for bilateral multi-objective negotiation in electronic commerce trading. The function and behaviour of several types of agents are discussed. These agents interact with each other in our negotiation support system model to create the most appropriate solution for both negotiating parties. In particular, we are concerned with a win-win negotiation approach in which agents seek to strike a fair deal that also maximizes the payoff for everyone involved. That is, if the opponent cannot accept an offer then the proponent should endeavour to find an alternative to make a trade-off. Against this background, a utility model based on fuzzy constraint satisfaction problems is proposed to ensure that these agents reach a solution that is fair for both negotiating parties if such a solution exists. The model uses prioritized fuzzy constraints to indicate how concessions should be made when necessary. In addition, by incorporating the notion of a negotiation argument into our evaluation model, the agents can sometimes reach agreements that would otherwise be impossible. Finally, a numerical example is given to display the applicability of the proposed approach for electronic trading assistance.     

论我国医疗纠纷的ADR解决机制的发展与完善

我国现存的医疗纠纷ADR解决机制缺乏人财保障性、统一性、公平性和规范性,建议大力推广中立专业的人民调解机制,逐步完善合理规范的行政调解机制,规范发展公平正义的协商机制,有限发展"选择终局型"仲裁机制。     

Legal and Procedural Strategies for Employees Utilizing Arbitration for Statutory Disputes

This article § reviews the current United States law regarding arbitration of statutory disputes in the nonunion employment setting. The article is a literature review and offers no new research findings but rather focuses on the important legal and procedural strategies employees may use throughout the arbitration process. The article specifically advises the reader on selection of an attorney, selection of an arbitrator, selection of a third party administrator, the discovery process, and the requisite hearing procedure. Possible challenges to the arbitration process are also discussed. In addition, the article focuses on the advantages and disadvantages of arbitration from an employee's point of view.     

Pendulum arbitration: a modest experiment

The annual round of the settlement of disputed transfer fees gave an opportunity for a modest attempt to access the impact of pendulum arbitration, Previous years had clearly indicated the centrifugal impact of arbitration. It appears that pendulum arbitration improves this but at the expense of one side: the club losing the player.     

Arbitrators’ characteristics and decision-making records,gender of arbitrators and grievants,and the presence of legal counsel as predictors of arbitral outcomes

Labor arbitration helps define employee and employer rights and responsibilities. Evidence indicates that the advocates at arbitration tend to concern themselves with issues unrelated to the facts of the case or to the rights and responsibilities of the parties involved. More specifically, before the hearing, management and union advocates often dwell on issues such as the importance of the arbitrators’ personal characteristics and their decision-making history, the likely effects of the gender of arbitrators and grievants, and whether the presence of legal counsel impacts the arbitral outcomes. The purpose of this study is to examine whether these non-case-related factors actually can be associated with differing awards by arbitrators. This study may be the first in which the arbitrators’ decision-making history (award orientation) is a primary issue. Of all the issues studied, the arbitrator’s disciplinary award orientation is the only one with a consistent impact on arbitral outcomes. We conclude that the energy and resources expended by the advocates concerning non-case-related issues would be better spent in preparing their cases for arbitration and in examining the potential impact of arbitration on the rights and responsibilities of management and its employees.     

Consistency and its converse: an introduction

This essay is a didactic introduction to the literature on the “consistency principle” and its “converse”. An allocation rule is consistent if for each problem in its domain of definition and each alternative that it chooses for it, then for the “reduced problem” obtained by imagining the departure of an arbitrary subgroup of the agents with their “components of the alternative” and reassessing the options open to the remaining agents, it chooses the restriction of the alternative to that subgroup. Converse consistency pertains to the opposite operation. It allows us to deduce that a rule chooses an alternative for a problem from the knowledge that for each two-agent subgroup, it chooses its restriction to the subgroup for the associated reduced problem this subgroup faces. We present two lemmas that have played a critical role in helping understand the implications of these properties in a great variety of models, the Elevator Lemma and the Bracing Lemma. We describe several applications. Finally, we illustrate the versatility of consistency and of its converse by means of a sample of characterizations based on them.     

Physicians and the risk of medical malpractice: The role of prior litigation in predicting the future

This article examines the role of a physician’s prior experience in medical malpractice litigation in the resolution of current malpractice claims. We first use probability theory to show that if physicians are heterogeneous in the quality of care they practice, then a record of malpractice liability makes it more likely that the physician provides care of relatively low quality, and that if a malpractice claim is filed, it is more likely that the physician was in fact negligent in this case, and that the claim will be paid. We then show that this last result, which is testable, holds up when we analyze the resolution of medical malpractice claims filed in Michigan over the period 1982 to 1989. We find that malpractice liability, whether from an out-of-court settlement or through verdict of a court or arbitration panel, is significantly more likely when the defendant has a poor prior litigation record. The defendant’s litigation record is also positively and significantly related to the amount of a settlement payment, but not to an award made through trial or arbitration.     

An arbitrator looks at grievance arbitration

This article is an overview of the major considerations that are crucial in the thought processes of an arbitrator in deciding a grievance-arbitration case. An arbitrator’s first obligation is to interpret and apply provisions of the labor agreement in a manner consistent with the intent of the parties. Past practices or precedents are often considered by arbitrators to assess the intent of the parties and to decide certain issues. The most subjective area confronting arbitrators is that of fairness and equity, primarily in discipline/discharge matters where just cause must be demonstrated. Most arbitrators apply the preponderance of evidence standard as the required burden of proof in deciding equity matters. Consistency in handling of prior cases and documentation are especially important in an arbitrator’s weighing of evidence. In summary, grievance arbitration is an extension of democratic due process to the industrial and business world. This article was prepared for presentation at a seminar sponsored by the American Management Foundation, May 6–7, 1993 (Chicago, Illinois). It is a revised, updated version of an article that originally appeared in the October, 1978 issue ofPersonnel Journal.     

The Dirty Dozen: Common Problem Areas in Principal–Agent Relationships

The main purpose of the article is to educate managers about potential difficulties caused by breach of fiduciary duties on the part of agents/employees within their organization. Managers will learn how to recognize common problem situations so they can take steps to avoid, or at least mitigate, any resulting damage. This article highlights 12 frequent situations—the “dirty dozen”—that pose dangers for business organizations.     

The role of internal agents in starting salary negotiations

We introduce the concept that internal organizational agents who negotiate starting salary packages with job applicants may not always act in the organization's best interests. To gain an understanding of what motivates the internal agent toward assuming a particular role, we use expectancy theory, agency theory and concepts from the negotiations literature. We describe the roles that agents may assume, identify factors that impact agents' motivation, and formulate propositions to help identify which role an agent is likely to enact in starting salary negotiations. We form propositions as to how these roles are likely to impact final negotiation outcomes of probability of hiring, salary size, and applicant satisfaction and discuss strategies for ensuring agents are motivated to enact a role that meets organizational objectives.     

Contracts,Negotiation, and Learning: An Examination of Termination Provisions

Taking a temporal view of learning in partnerships, we argue that learning to contract from prior relationships can be manifested not only in an increase in the level of contractual detail but also in a decrease in negotiation time for a given level of contractual detail. We analyse the influence that the length of prior relationships and the detail of termination provisions have on negotiation time, or the time period that it takes for partners to reach a mutually acceptable agreement. We find that: (1) the length of prior relationships has a curvilinear, U‐shaped effect on negotiation time, suggesting the possibility of diverse learning mechanisms as the relationship unfolds; (2) the impact of the detail of termination provisions on negotiation time varies across different types of termination provisions; and (3) it takes a shorter time to negotiate certain types of termination provisions when partners have longer prior relationships. Beyond suggesting the need to investigate the consequences of contractual provisions for collaborators, our study proposes negotiation time as an additional indicator of a learning‐to‐contract effect that complements existing ones.     

A Mixed Contract with Alternative Performance Measures in a Multitask Agency

We compare the impact of two different mixed contracts on agent efforts when production depends on agent efforts at their own tasks as well as at helping others. The first contract combines compensation based on team output with that of a tournament where the bonus award is based on a ranking of individual output. The second contract also combines team output compensation with that of tournament except that the bonus award is based upon a relative ranking of an index constructed of alternative performance measures. We show that the latter contract can lead to higher levels of welfares than the former one. We also show that if the weights are properly constructed, the alternative contract can prompt agents into choosing first‐best levels of effort. Copyright © 2013 John Wiley & Sons, Ltd.     

我国贸易谈判中商务英语的应用技巧

对外贸易离不开商务谈判,在谈判的过程中有很多因素会影响谈判的结果。因此,在进行谈判时对于一名专业的商务谈判人员来讲仅仅只是了解谈判的基本原则和熟悉有关的理论知识是远远不够的,还必须掌握和熟练使用谈判的相关技巧,结合商务英语的基本策略就可以实现共赢,只有如此才可以在谈判中掌握先机达到自己的目的。     

Survival and the art of profit maximization

We study the relationship between rationality and economic survival in a simple dynamic model, where agents from different populations interact repeatedly through random matching. An explicit criterion (“bankruptcy”) determines whether agents survive each interaction; all agents are presumed to be aware of this criterion. Survival in each interaction depends on two factors: the strategies agents adopt when they interact, and the wealth levels they bring to the game. The model is completely symmetric with the only difference between the agents of different populations being their objectives. We consider the case where there are two populations of agents in which all agents from one group have as their objective, maximizing the expected profits from each interaction, while all agents from the other attempt simply to maximize the probability of surviving (i.e., not going bankrupt in) the interaction. We show that under the equilibrium dynamics, the proportions of each group in the total population must be bounded away from zero, but the balance is in favor of the survival-probability maximizers in that their numbers as a fraction of total population must always exceed 1/2, and can be arbitrarily close to unity. On the other hand, the fraction of total wealth controlled by the expected profit maximizers must also be at least 1/2, and can asymptotically tend to unity.     

Measurement of power,probabilities, and alternative models of man

Starting from Max Weber’s definitions of power we discuss the meaning of his concept Chance and its relationships to the probabilistic notions that play a central role in definitions of indices of measuring voting power. Using Martin Hollis’s distinction between two models of man—plastic and autonomous—we argue that the common measures of voting power when interpreted in terms of probabilities seem to be in better conformity with the model of plastic man than with the model of autonomous man. The paper elaborates on the probability interpretation with applications to the modelling of power measures with a priori unions and to the concept of “real voting power” based on relative frequencies of historical events. Power as potential—which in our view is what Weber very likely meant—remains an elusive concept, but one that should be amenable to game-theoretic analysis.     

Spatial co-localisation of firms and entrepreneurial dynamics

In this conceptual paper, I propose an interpretation of business dynamics in terms of the spatial co-localisation of firms—considered as an intelligent cognitive system—in a circumscribed area in order to form clusters of various types. I interpret clustering by adopting the methodology of multi-agent combinatory systems: that is, systems formed by collectivities of agents (firms) in which an internal feedback recombines the micro behaviours of the agents (localisation) in order to produce a macro effect (cluster) which, in turn, modifies the attractiveness of the area and conditions the subsequent localisations. I also present the idea that if a cluster has fitness advantages for new firms, then usually new entrepreneurs are formed within it and the cluster widens, due to the endogenous genesis of new firms.     

Case characteristics affecting the method of grievance dispute settlement

In 1986, we reported the results of an attempt to model the inner, workings of grievance arbitration. We concluded that the primary determinant of whether or not a grievance is settled privately or through arbitral award is the degree of private, outside legal representation. This article extends that work. Utilizing a more sophisticated statistical technique with a better specified list of explanatory variables, it identifies two additional grievance case characteristics that influence the method of grievance settlement: case complexity and type of dispute. The probability of an arbitrated settlement is greatest where the issue is simple and involves discipline and where the parties are represented by private, outside attorney advocates.