Choosing the Wrong Pond: Social Comparisons in Negotiations That Reflect a Self-Serving Bias
Abstract
We explore the role that choice of comparison groups plays in explaining impasse in teacher contract negotiations. We hypothesize that the negotiators select “comparable” districts in a biased fashion such that teachers' salaries in districts that unions view as comparable are higher than teachers' salaries in districts that school boards view as comparable. We also predict that strike activity is positively related to the difference in the salary levels of the unions' and boards' lists of comparables. We test these predictions using a unique combination of subjective survey and field data on teacher contract negotiations in Pennsylvania. Both hypotheses are supported by the data.
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In the Pennsylvania teacher negotiations field study, both sides listed about the same number of comparable districts (about 4.5).
“Considering only the districts in which both the union and school board returned the survey, we found that both sides listed about the same number of districts as being comparable (about 4.5).”
From Explaining Bargaining Impasse: The Role of Self-Serving Biases (1997) · cites this paper as Babcock, Wang and Loewenstein, 1996
The response rate for returning the survey was 57 percent for the union presidents and 35 percent for the school board presidents.
“The response rate for returning the survey was 57 percent for the union presidents and 35 percent for the school board presidents.”
From Explaining Bargaining Impasse: The Role of Self-Serving Biases (1997) · cites this paper as Babcock, Wang and Loewenstein (1996)
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- Authors
- Babcock, L., Wang, X., & Loewenstein, G.
- Affiliations
- Carnegie Mellon University (US)
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 1996-02-01
- Volume
- 111
- Issue
- 1
- Pages
- 1-19
- ISSN
- 0033-5533 (ISSN-L)
- 1531-4650
- OpenAlex
- W1979776678
- Cited by
- 238
- References
- 1
- Citations by year
- 2026: 4 · 2025: 4 · 2024: 3 · 2023: 5 · 2022: 5 · 2021: 11 · 2020: 4 · 2019: 7 · 2018: 12 · 2017: 3 · 2016: 6 · 2015: 11 · 2014: 8 · 2013: 16 · 2012: 14
- FWCI
- 19.51
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Quarterly Journal of Economics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- HighWire Press Open Archive (submittedVersion)
- Topics
- Social Sciences › Public Administration › Labor Movements and Unions
- Social Sciences › Sociology and Political Science › Conflict Management and Negotiation
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Keywords
- social comparison, self-serving bias, comparison group selection, teacher salaries, strike activity, trade unions, school boards, negotiation impasse, Pennsylvania
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