Final-offer arbitration is a variant of interest arbitration that is designed to reduce the chilling and narcotic effects.

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Final-offer arbitration is specifically designed to reduce the negative effects of traditional interest arbitration, including the chilling and narcotic effects that can occur when parties are forced to accept an outcome they do not agree with. In final-offer arbitration, each party submits a final offer, and the arbitrator must choose one of the offers without making any changes. This approach can encourage parties to be more reasonable and constructive in their proposals, as they know that their final offer may be selected.

Final-Offer Arbitration Is a Variant of Interest Arbitration That Is