On a number of occasions, professors solicit an offer from another university solely for the purpose of securing a generous counter-offer from their current employer. Although this has the desirable feature of helping to ensure individuals are paid their market value, the institution making the unsuccessful offer puts time, effort, money and prestige on the line and gets nothing in return.

The university making the offer should ask for a "consideration deposit." Such a deposit would equal a modest proportion of the raise that the candidate is going to be offerred. If the candidate accepts, the deposit is returned. If they turn the university down, they forefeit the deposit. Presumably, some folks will get their home institution's counter-offer to include a "consideration deposit" reimbursement.

The result is that the university making the offer derives some benefit from making an offer even when it is rejected. It might also stimulate a more active market as deans learn that there is an advantage to making offers even when the prospective candidate declines.

Obviously, such a proposal does raise collective action problems. It might have to be implemented by a professional association that requires all of its members to participate.

Such a proposal would inevitably work in other employment settings too.

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