Rules, Coordination and Manipulability Among Arbitrators / Janet Currie.

Format:

Book

Author/Creator:

Currie, Janet.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w3821.

NBER working paper series no. w3821

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1991.

Summary:

This paper provides evidence that the variance of arbitrated wage settlements is systematically lower than the variance of wage settlements negotiated without arbitration using a panel of contracts between teachers and school boards in the Canadian province of British Columbia. This finding is interpreted as evidence that arbitrators coordinate their decisions. However, coordination on a rule leaves arbitrators as a group vulnerable to manipulation by coalitions of employers or employees that understand the rule. Because successful manipulation of arbitrators undermines the credibility of the institution, arbitrators as a group have incentives to change their rules from time to time. Evidence is presented that in BC, school boards were more successful than teachers at manipulating arbitrators, and that arbitrators responded by changing their rule.

Notes:

Print version record

August 1991.