Are voluntary agreements better? Evidence from baseball arbitration

Citation data:

Industrial and Labor Relations Review, ISSN: 0019-7939, Vol: 70, Issue: 4, Page: 865-893

Publication Year:
Usage 4160
Abstract Views 2345
Full Text Views 1809
Link-outs 6
Captures 32
Exports-Saves 22
Readers 10
Mentions 1
Blog Mentions 1
Social Media 4
Tweets 4
John W. Budd; Aaron Sojourner; Jaewoo Jung
SAGE Publications
Business, Management and Accounting
Most Recent Tweet View All Tweets
Most Recent Blog Mention
article description
This study empirically examines the widespread belief that voluntarily negotiated agreements produce better long-run relationships than do third-party imposed resolutions, such as arbitrator decisions or court judgments. Major League Baseball provides a compelling setting for these analyses because individual performance is well measured, there is the possibility of relationship breakdown, and both voluntary and arbitrator-imposed resolutions routinely occur. Two key outcomes are analyzed: post-resolution player performance and the durability of the club-player relationship. Multivariate analyses of 1,424 salary renegotiations fail to find significant differences in subsequent player performance, but voluntary resolutions are associated with more durable post-resolution club-player relationships.