The Causes of Impasses in Labor Disputes

Abstract

Using data on teacher contract negotiations under final‐offer arbitration, this paper investigates the causes of impasses in contract negotiations and finds some support for each of three perspectives: game‐theoretic, psychological, and political. The large number of “consent awards” suggests that negotiators frequently wish to avoid the political costs of a compromise settlement, preferring to blame arbitrators for the outcome. The positive correlation between the probability of an impasse and the variance in comparable negotiated settlements suggests that the parties base their judgments of fairness using evidence most consistent with their own position.