Explaining Bargaining Impasse: The Role of Self-Serving Biases
AbstractThe authors review studies conducted by themselves and coauthors that document a 'self-serving' bias in judgments of fairness and demonstrate that the bias is an important cause of impasse in negotiations. They discuss experimental evidence showing that (1) the bias causes impasse; (2) it is possible to reduce impasses by debiasing bargainers; and (3) the bias results from selective evaluation of information. The authors also review results from a field study of negotiations between teachers' unions and school boards in Pennsylvania that both document the fairness bias in a naturalistic setting and demonstrates its impact on strikes.
CitationBabcock, Linda, and George Loewenstein. 1997. "Explaining Bargaining Impasse: The Role of Self-Serving Biases." Journal of Economic Perspectives, 11 (1): 109-126. DOI: 10.1257/jep.11.1.109
- D74 Conflict; Conflict Resolution; Alliances
- J52 Dispute Resolution: Strikes, Arbitration, and Mediation; Collective Bargaining