Skip to main content

Alternative Dispute Resolution

  • Reference work entry
  • First Online:
Encyclopedia of Law and Economics
  • 63 Accesses

Definition

Alternative dispute resolution (ADR) refers to any mode of dispute resolution that does not utilize the court system, such as arbitration, neutral assessment, conciliation, and mediation. Methods of ADR are different from one another, but share common points, notably the feature that a third party is involved and a less formal and complex framework than courts. The third party offers an opinion about the dispute to the disputants or chose a binding decision. In recent decades, many countries have adopted rules requiring parties to go through some form of ADR before resorting to trial. ADR programs currently operate in a wide variety of contexts: union-management negotiations, commercial contract disputes, divorce negotiations, etc. The utilization of ADR mechanisms is championed by parties and lawyers, as well as by politicians or judges. Parties and lawyers hope to withdraw from ADR a benefit in terms of time and costs. Politicians and judges seek to relieve congestion in...

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 819.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 1,099.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Armstrong MJ, Hurley W (2002) Arbitration using the closest offer principle of arbitrator behavior. Math Soc Sci 43(1):19–26

    Article  Google Scholar 

  • Arrow K. et al. (1995) Barriers to conflict resolution. W. W. Norton & Company, 1st ed, p. 368

    Google Scholar 

  • Ashenfelter O (1987) Arbitrator behavior. Am Econ Rev 77(2):342–346

    Google Scholar 

  • Ayres I, Brown JG (1994) Economic rationales for mediation. Va Law Rev 80:323–402

    Article  Google Scholar 

  • Bazerman M, Farber H (1985) Arbitrator decision making: when are final offers important? Ind Lab Relat Rev 39(1):76–89

    Article  Google Scholar 

  • Bloom D, Cavanagh C (1986) An analysis of the selection of arbitrators. Am Econ Rev 76:408–421

    Google Scholar 

  • Brams SJ, Merill S (1986) Binding versus final-offer arbitration: a combination is best. Manag Sci 32(10):1346–1355

    Article  Google Scholar 

  • Chappe N (2002) The informational role of the arbitration clause. Eur J Law Econ 13(1):27–34

    Article  Google Scholar 

  • Chappe N, Gabuthy Y (2013) The impact of lawyers and fee arrangements on arbitration. J Inst Theor Econ 139:720–738

    Google Scholar 

  • Chatterjee K (1981) Comparison of arbitration procedures: models with complete and incomplete information. IEEE Trans Syst Man Cybern 11(2):101–109

    Article  Google Scholar 

  • Dickinson D, Hunnicutt L (2010) Nonbinding recommendations: the relative effects of focal points versus uncertainty reduction on bargaining outcomes. Theory Decis 69:615–634

    Article  Google Scholar 

  • Doornik K (2014) A rationale for mediation and its optimal use. Int Rev Law Econ 38:1–10

    Article  Google Scholar 

  • Farber H (1980) An analysis of final-offer arbitration. J Confl Resolut 24(4):683–705

    Article  Google Scholar 

  • Farber H (1981) Splitting-the-difference in interest arbitration. Ind Lab Relat Rev 35:70–77

    Article  Google Scholar 

  • Farber H, Bazerman, (1986) The general basis of arbitrator behavior: an empirical analysis of conventional and final-offer arbitration. Econometrica 54(6):1503–1528

    Article  Google Scholar 

  • Farber H, Katz H (1979) Interest arbitration, outcomes, and the incentive to bargain. Ind Labor Relat Rev 33(1):55–63

    Article  Google Scholar 

  • Holler MJ, Lindner I (2004) Mediation as signal. Eur J Law Econ 17:165–173

    Article  Google Scholar 

  • Shavell S (1995) Alternative dispute resolution: an economic analysis. J Legal Stud 24:1–28

    Article  Google Scholar 

  • Zeng DZ (2003) An amendment to final-offer arbitration. Math Soc Sci 46(1):9–19

    Article  Google Scholar 

  • Zeng D-Z, Nakamura S, Ibaraki T (1996) Double-offer arbitration. Math Soc Sci 31(3):147–170

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Nathalie Chappe .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Science+Business Media, LLC, part of Springer Nature

About this entry

Check for updates. Verify currency and authenticity via CrossMark

Cite this entry

Chappe, N. (2019). Alternative Dispute Resolution. In: Marciano, A., Ramello, G.B. (eds) Encyclopedia of Law and Economics. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-7753-2_65

Download citation

Publish with us

Policies and ethics