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Non-Arbitration Variations. Class 1. Administration. Give quiz Return quizzes at end Collect critiques Return critiques at end Final Exam - Everybody needs to be sure which quizzes they missed Final exam quiz strategy. Review. There are problems in the use of arbitration

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Non-Arbitration Variations

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Non arbitration variations

Non-Arbitration Variations

Class 1



  • Give quiz

  • Return quizzes at end

  • Collect critiques

  • Return critiques at end

  • Final Exam - Everybody needs to be sure which quizzes they missed

  • Final exam quiz strategy



  • There are problems in the use of arbitration

  • FOA, Repeated Offer Selection and Cost-Formula Arbitration are all techniques designed to address those problems and there are others

  • But these all have problems of their own



  • Why Non-Arbitration Variations

  • Divide and Choose techniques

I why non arbitration variations

I. Why Non-Arbitration Variations?

  • What do all the arbitration variations share? In terms of the three criteria?

    • Someone else makes the decision if the parties can’t

    • This fact impacts all of the prior negotiations

  • Is there a way to encourage the disputants to make their own decisions

  • Remove the third party entirely

Ii divide and choose

II. Divide and Choose

  • Children’s variation

  • Trivial in case of single dimension

    • ice cream

    • Only one set of interests here and they overlap, more of the ice cream

    • Suppose there are two dimensions, vanilla and chocolate

  • Suppose there are even more dimensions?

    • What happens then?

    • What role do you prefer to play?

Ii divide and choose1

II. Divide and choose

  • The business dissolution problem

  • The issue

  • How can this be resolved using a divide and choose technique?

Ii divide and choose2

II. Divide and Choose

  • How can this technique be used in a marital dissolution situation?

  • Would you include child custody issues in the divide and choose procedure? Why or why not?

Next time

Next Time

  • Technique based on the strike but no one stops working

Non arbitration variations1

Non-Arbitration Variations

Class 2



  • Return quizzes

  • Return critiques

  • Reminder – final exam 9:00 AM, Monday May 12

  • I have grade book with me today



  • Divide and choose technique

  • Depends on problem having multiple dimensions so interests are not the same

  • Can be used to resolve some business and personal disputes



  • Virtual Strike – Definition

  • Virtual Strike – Issues and Variations

  • A variation for commercial disputes

  • Auctions

I virtual strike definition

I. Virtual Strike - Definition

  • Other names

    • Statutory Strike

    • Non-stoppage Strike

  • Similar in Concept to Cost-Formula Arbitration

  • Also similar to collective bargaining with strikes

  • Replace strike costs with financial costs

  • Example

Ii virtual strikes issues and variations

II. Virtual Strikes – Issues and Variations

  • What happens to the extra money?

  • What happens if some employees don’t want to strike?

  • Can the percentage of wage cost be altered and by whom?

Iii a variation for commercial disputes

III. A Variation for Commercial Disputes

  • How could this be modified for a commercial dispute (e.g. one company claims another provided defective goods)?

  • Would companies be likely to agree to this? Why or why not?

Iv auctions

IV. Auctions

  • What is the interest and what is the strategy of the bidder in an auction?

  • What is the interest and what is the strategy of the seller?

  • Is there a better way for both?

Next time1

Next Time

  • Conclusions

  • Discussion of final exam

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