Question

One advantage of conventional interest arbitration is that:

a. It may cause a narcotic effect, making the two parties more likely to turn to arbitration to settle other disputes in the future.

b. It reduces the cost of not reaching agreement, thereby causing a chilling effect on the parties incentive to reach an agreement.

c. It affords the arbitrator the least degree of flexibility to determine an appropriate settlement outcome, opening the door to arbitration.

d. It affords the arbitrator the greatest degree of flexibility to determine an appropriate settlement outcome.

e. Anticipating arbitration may change psychology of how bargaining teams bargain.

Answer

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