Choosing the Wrong Pond: Social Comparisons in Negotiations That Reflect a Self-Serving Bias

S-Tier
Journal: Quarterly Journal of Economics
Year: 1996
Volume: 111
Issue: 1
Pages: 1-19

Authors (3)

Linda Babcock (not in RePEc) Xianghong Wang (not in RePEc) George Loewenstein (Carnegie Mellon University)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We explore the role that choice of comparison groups plays in explaining impasse in teacher contract negotiations. We hypothesize that the negotiators select "comparable" districts in a biased fashion such that teachers' salaries in districts that unions view as comparable are higher than teachers' salaries in districts that school boards view as comparable. We also predict that strike activity is positively related to the difference in the salary levels of the unions' and boards' lists of comparables. We test these predictions using a unique combination of subjective survey and field data on teacher contract negotiations in Pennsylvania. Both hypotheses are supported by the data.

Technical Details

RePEc Handle
repec:oup:qjecon:v:111:y:1996:i:1:p:1-19.
Journal Field
General
Author Count
3
Added to Database
2026-01-25