Negotiators sometimes begin to rely too heavily on arbitration as a means of settling their contract disputes, rather than working hard to come to their own agreement. This is known as the chilling effect.

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Quizplus · Accepted Answer

The term you're referring to is actually known as the "narcotizing effect," not the chilling effect. The chilling effect refers to the discouragement of the legitimate exercise of natural and legal rights by the threat of legal sanction, whereas the narcotizing effect describes how people may become passive and overly reliant on a particular solution or system, such as arbitration, instead of actively seeking their own resolutions.

Negotiators Sometimes Begin to Rely Too Heavily on Arbitration as a Means