American Economic Review Vol. 78 No. 5 1988
Learning in Equilibrium Models of Arbitration
Abstract
This paper analyzes strategic communication in equilibrium models of conventional and final-offer interest arbitration. Both models emphasize the role of learning by the arbitrator from the parties' offers about the state of the employment relationship, which is known to the parties but not to the arbitrator. The analysis focuses on separating equilibria in which the arbitrator's behavior is identical to the reduced-form decision rule typically assumed in the empirical literature. The paper thereby provides a structural interpretation for the existing empirical work.
- Volume
- 78
- Issue
- 5
- Pages
- 896-912
- Sources
- bibtex:phds-export.bib