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Litigation glossary
Legal structure

Final-Offer Selection Arbitration

An arbitration format where each side submits one final settlement number and the arbitrator must pick one of the two numbers as-is, with no splitting or compromise.

In final-offer selection arbitration, each party submits a single final number to the arbitrator, who is bound to select one of the two submitted figures in its entirety. The arbitrator cannot average them, split the difference, or impose a different number of their own choosing.

This structure is sometimes called baseball arbitration because of its use in Major League Baseball salary disputes, and it deliberately punishes unreasonable positioning: because moderate, well-supported numbers are more likely to be picked than extreme ones, the format pushes both sides toward realistic final offers rather than anchoring aggressively.

Juricratic models final-offer selection arbitration as a discrete, non-continuous resolution branch on the negotiation dial. Rather than the smooth settlement-range distribution used for ordinary bargaining, the simulation treats the outcome as a binary selection between the two submitted numbers, and can show how each side's incentive to moderate its offer changes as a result.

In litigation

How it actually shows up

Parties choose final-offer arbitration specifically to discourage extreme positioning and to get a faster, cheaper resolution than a full evidentiary arbitration or trial, and each side's strategic focus shifts from arguing case merits broadly to picking the single most defensible number the arbitrator is likely to select.

Questions
Can the arbitrator average the two submitted numbers?
No. The entire structure requires the arbitrator to pick one submission in full, which is what distinguishes it from conventional arbitration.
Why is it called baseball arbitration?
Because Major League Baseball uses this exact format to resolve player salary disputes between clubs and arbitration-eligible players.
Does final-offer arbitration require an evidentiary hearing?
Formats vary. Some versions include a hearing with evidence and argument before the arbitrator picks a number, others rely solely on written submissions.

This page is an educational explainer, not legal advice, and creates no attorney–client relationship. Juricratic is a simulation engine: every probability-like figure is a dial you set, not a calibrated prediction. Verify every rule, deadline, and figure against the authorities and orders that govern your matter.

Turn the concept into a modeled matter.

Juricratic makes every one of these ideas a live dial: model your case as a solvable game, then watch the optimal line and the settlement window move as the assumptions do.

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simulation, not prediction — not legal advice