_______ gives arbitration disputants a powerful incentive to continue negotiating seriously,especially if they are concerned that the arbitrator will not accept their extreme offer.
A)The biasing effect.
B)The chilling effect.
C)Final offer arbitration.
D)The decision-acceptance effect.

Question

Quizplus · Accepted Answer

Final offer arbitration (FOA) gives bilateral disputants an incentive to make reasonable offers because the arbitrator must select one party's proposal in its entirety, usually without modification, and cannot split the difference. This provides a "chilling" or deterring effect on extreme proposals and encourages both parties to negotiate seriously.

_______ Gives Arbitration Disputants a Powerful Incentive to Continue Negotiating