Are Voluntary Agreements Better? Evidence from Baseball Arbitration

Citation data:

ILR Review, ISSN: 0019-7939, Vol: 70, Issue: 4, Page: 865-893

Publication Year:
2017
Usage 4160
Abstract Views 2345
Full Text Views 1809
Link-outs 6
Captures 22
Exports-Saves 22
Mentions 1
Blog Mentions 1
Social Media 3
Tweets 3
DOI:
10.1177/0019793916661305
Author(s):
John W. Budd, Aaron Sojourner, Jaewoo Jung
Publisher(s):
SAGE Publications
Tags:
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.

This article has 0 Wikipedia mention.