One Advantage of Conventional Interest Arbitration Is That

question 38

Multiple Choice

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.

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Definitions:

Cumulative Probability Distribution

A function that gives the probability that a random variable is less than or equal to a certain value.

Monte Carlo Analysis

A statistical technique that uses random sampling and simulation to estimate the probability of different outcomes in a process or decision-making.

Random Number Range

The interval within which random numbers can be generated, used in simulations and probabilistic models to represent unpredictable variables.

Monte Carlo Analysis

A computational algorithm that uses random sampling to obtain numerical results, typically used to solve problems that might be deterministic in principle.