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In the paper by Alexandre Mas (2006) "Pay, Reference Points and Police Performance," explain the role of ‘final offer arbitration’ of wage disputes in this study

Economics

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In the paper by Alexandre Mas (2006) "Pay, Reference Points and Police Performance," explain the
role of ‘final offer arbitration’ of wage disputes in this study. Explain in detail how the author carries
out the analysis. In your answer you should discuss the setting for the Mas study and why it is
especially attractive for the question addressed; the data employed; the key outcomes; and the
empirical approach. Summarise the main findings. Why does Mas believe that a standard
neoclassical model cannot rationalise the findings? Instead, Mas argues that worker “productivity
depends on changes in pay relative to a reference level.” What is the evidence presented in favour
of this hypothesis?