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Ch. 15 : Environmental Dispute Resolution

Explore the benefits and drawbacks of the sincerity rule in resolving environmental disputes, including its impact on bargaining power and settlement outcomes. Learn about alternative methods like final offer auctions.

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Ch. 15 : Environmental Dispute Resolution

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  1. Ch. 15: Environmental Dispute Resolution

  2. Alternation

  3. The Sincerity Rule • Either side makes an offer. • 2) The other side either accepts, or rejects, in which case they will proceed to court and the offerorwill pay the offeree's fees.

  4. The Sincerity Rule Advantages: * Removes the effects or differing bargaining power * Encourages settlement near the expected judgment Disadvantages: * Prohibits further bargaining if it fails * Inflicts large costs on offeror if it fails

  5. Final Offer Auctions 1) The two sides bid for the right to make the final offer. 2) The side that makes the winning bid gives the amount of the bid to the side that receives the final offer.

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