The effect of a larger contract zone on agreement rates under arbitration

B-Tier
Journal: Journal of Behavioral and Experimental Economics
Year: 2022
Volume: 100
Issue: C

Authors (2)

Kosmopoulou, Georgia (University of Oklahoma) Nedelescu, Daniel M. (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

In the arbitration literature there is no common agreement about the nature of the relationship between the size of the contract zone and agreement rates. The results from our experiment show that, when the size of the contract zone increases there are two prevailing effects: one effect is attributed to changes in the range of possible outcomes, and the other to coordination issues. While more room for negotiation leads to higher agreement rates, coordination problems largely impede agreement among rational subjects. The overall effect of an increase in the contract zone depends on the relative magnitude of these opposing effects.

Technical Details

RePEc Handle
repec:eee:soceco:v:100:y:2022:i:c:s2214804322000751
Journal Field
Experimental
Author Count
2
Added to Database
2026-01-25