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In response to "Are arbitration rulings based on statistics and entirely objective information, or is there some subjectivity to it? -- nm" by Mop (211 lbs)

Both the team and the player submit an offer to an independant arbitrator, then are given a window to negotiate a compromise.

If no compromise is reached, the two sides present their arguments for why their figure is more correct. The arbitrator looks at the two arguements and compares them against players with similar experience (ie compares pitchers with 3 seasons experience in the league vs other pitchers with similar levels of experience) and then picks one of the two numbers. The arbitrator can not pick a number higher, lower or in between the two submittals, just one of the two options. The arbitrator's decision is binding.

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