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.
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.
- 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.
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