Abstract
This paper deals with the effects that intermediation has on strategic behaviour in negotiations. To this end, we use the tools of game theory to analyse how different institutional settings can provide specific strategic incentives and thereby condition the outcome of negotiations. We concentrate on some very recent contributions, which have addressed gaps in this literature and stress the economic intuition behind some predicted behaviours.
Similar content being viewed by others
References
O. Ashenfelter and D. E. Bloom, “Models of Arbitrator Behavior: Theory and Evidence”, 74 American Economic Review (1984) 111–125.
O. Ashenfelter and J. Currie, “Negotiator Behavior and the Occurrence of Disputes”, 80 American Economic Review Papers and Proceedings (1990) 416–420.
O. Ashenfelter, “Arbitrator behavior”, 77 American Economic Review Papers and Proceedings (1987) 342–346.
K. Binmore, A. Rubinstein, and A. Wolinsky, “The Nash Bargaining Solution in Economic Modelling”, 17 Rand Journal of Economics (1986) 176–188.
K. Binmore, A. Shaked, and J. Sutton, “An Outside Option Experiment”, 104 Quarterly Journal of Economics (1989) 753–770.
D. E. Bloom and C. L. Cavanagh, “Negotiator Behavior under Arbitration”, 77 American Economic Review Papers and Proceedings (1987) 353–358.
S. J. Brams and S. Merrill III, “Equilibrium Strategies for Final-Offer Arbitration: There is No Median Convergence”, 29 Management Science (1983) 927–941.
S. J. Brams and S. Merrill III, “Binding Versus Final-Offer Arbitration: A Combination is Best”, 32 Management Science (1986) 1346–1355.
O. Compte and P. Jehiel, “On the Role of Arbitration in Negotiations”, mimeo, (C.E.R.A.S.-E.N.RC. 1995).
H. S. Farber and M. Bazerman, “The General Basis of Arbitrator Behavior: An Empirical Analysis of Conventional and Final-Offer Arbitration”, 54 Econometrica (1986) 819–844.
X. Jarque, C. Ponsatí, and J. Sákovics, “Mediation: Incomplete information bargaining with filtered communication”, mimeo (Universitat Autònoma de Barcelona, Institut d’Anàlisi Econòmica (CSIC) and University of Edinburgh 2001).
J. A. Kennerley, Arbitration: Cases in Industrial Relations (London: Pitman Publishing 1994).
P. Manzini and M. Mariotti, “Perfect Equilibria in a Model of Bargaining with Arbitration”, 37(1) Games and Economic Behavior (2001) 170–195.
P. Manzini and C. Ponsatí, “Stakeholders, Bargaining and Strikes” (IZA, Institute for Labour Economics, Bonn — Discussion Paper no. 395, 2001).
P. Manzini, “Divide et Impera: Negotiating with a Stakeholder”, (IZA, Institute for Labour Economics, Bonn — Discussion Paper 421 and Queen Mary Department of Economics Working Paper no. 451, 2001).
S. Milner, “Final-Offer Arbitration in the U.K.: Incidence, Processes and outcomes” (Employment Department Research Series No. 7, 1993).
G. S. Morris, Strikes in essential services (London/New York: Mansell 1986).
A. Muthoo, Bargaining Theory with Applications (Cambridge: Cambridge University Press 1999).
M. Osborne and A. Rubinstein, Bargaining and Markets (San Diego: Academic Press 1990).
M. A. Peña, Concession Bargaining and Voluntary Arbitration, Unpublished Ph.D. Thesis (Universitat Autònoma de Barcelona 2002).
C. Ponsatí, “Economic Diplomacy”, mimeo (Universitòt Autònoma de Barcelona, Institut d’Anàlisi Econòmica (CSIC) 2001).
A. Rubinstein, “Perfect Equilibrium in a Bargaining Model”, 50 Econometrica (1982) 97–109.
C. Wilson, “Mediation and the Nash Bargaining Solution”, mimeo (New York University 2000).
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Manzini, P., Mariotti, M. Arbitration and Mediation: an Economic Perspective. Eur Bus Org Law Rev 3, 629–648 (2002). https://doi.org/10.1017/S1566752900001087
Published:
Issue Date:
DOI: https://doi.org/10.1017/S1566752900001087