CHOOSING THE WRONG POND - SOCIAL COMPARISONS IN NEGOTIATIONS THAT REFLECT A SELF-SERVING BIAS

We explore the role that choice of comparison groups plays in explaini ng impasse in teacher contract negotiations. We hypothesize that the n egotiators select ''comparable'' districts in a biased fashion such th at 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 relate d to the difference in the salary levels of the unions' and boards' li sts of comparables. We test these predictions using a unique combinati on of subjective survey and field data on teacher contract negotiation s in Pennsylvania. Both hypotheses are supported by the data.