Arbitration procedures with the possibility of compromise

The paper presents, analyses and assesses two kinds of procedures which can be applied in an arbitration-like situation. The first of them in fact makes it possible to avoid explicit arbitration. Both are based upon a departure from the strict final-offer arbitration. In the first case the players are allowed to choose the mean of their final offers, before the arbitrator makes a choice and can therefore reach a compromise without explicit arbitration. The conditions under which this compromise is attractive for the players are relatively simple. In the second case the following sequential offers are allowed: one player, a controffer and must pledge to accept the mean; subsequently, the first player can accept or reject the mean. If the mean is rejected the final offer or combined arbitration (conventional+final-offer) is applied.