Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
Explaining Bargaining Impasse: The Role of Self-Serving Biases
Journal of Economic Perspectives
vol. 11,
no. 1, Winter 1997
(pp. 109–126)
(Complimentary)
Abstract
The 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.Citation
Babcock, 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.11.1.109JEL Classification
- D74 Conflict; Conflict Resolution; Alliances
- J52 Dispute Resolution: Strikes, Arbitration, and Mediation; Collective Bargaining