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An Experimental Evaluation of Online Dispute Resolution
[Une évaluation expérimentale des modes électroniques de résolution des litiges]

Author

Listed:
  • Yannick Gabuthy

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

  • Nicolas Jacquemet

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP1 UFR02 - Université Paris 1 Panthéon-Sorbonne - UFR d'Économie - UP1 - Université Paris 1 Panthéon-Sorbonne)

Abstract

The extensive development of the Internet and electronic commerce has resulted in the emergence of electronic methods of dispute resolution. The aim of this paper is to experimentally evaluate the economic performance of an innovative procedure, automated negotiation, which integrates technology as an active agent in the processing of conflicts. The parties' proposals are received and evaluated by computer software, which introduces a convergence mechanism into the negotiation process and determines the terms of an agreement according to a pre-defined rule. The results show that the parties are incentivized to strategically exploit this convergence mechanism in order to increase their gains, and that this greatly limits the effectiveness of the process. The threat of disagreement, however, associated with an increase in the degree of conflict between the parties, seems to limit this perverse effect, incentivizing the parties towards conciliation. The implications of these results allow us to discuss the potential role of public regulation and reputation mechanisms in the virtual world.

Suggested Citation

  • Yannick Gabuthy & Nicolas Jacquemet, 2007. "An Experimental Evaluation of Online Dispute Resolution [Une évaluation expérimentale des modes électroniques de résolution des litiges]," Post-Print halshs-00259457, HAL.
    • Handle: RePEc:hal:journl:halshs-00259457
    DOI: 10.3917/reco.586.1309
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00259457
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    References listed on IDEAS

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    1. Ashenfelter, Orley, et al, 1992. "An Experimental Comparison of Dispute Rates in Alternative Arbitration Systems," Econometrica, Econometric Society, vol. 60(6), pages 1407-1433, November.
    2. Yannick Gabuthy, 2004. "Online Dispute Resolution and Bargaining," European Journal of Law and Economics, Springer, vol. 17(3), pages 353-371, May.
    3. Kalyan Chatterjee & William Samuelson, 1983. "Bargaining under Incomplete Information," Operations Research, INFORMS, vol. 31(5), pages 835-851, October.
    4. Vernon L. Smith, 1962. "An Experimental Study of Competitive Market Behavior," Journal of Political Economy, University of Chicago Press, vol. 70, pages 111-111.
    5. Bruno Deffains & Philippe Fenoglio, 2001. "Economie et ordre juridique de l'espace virtuel," Revue Économique, Programme National Persée, vol. 52(1), pages 331-347.
    6. Paul Resnick & Richard Zeckhauser & John Swanson & Kate Lockwood, 2006. "The value of reputation on eBay: A controlled experiment," Experimental Economics, Springer;Economic Science Association, vol. 9(2), pages 79-101, June.
    7. Bruno Deffains & Philippe Fenoglio, 2001. "Économie et ordre juridique de l'espace virtuel," Revue économique, Presses de Sciences-Po, vol. 52(7), pages 331-347.
    8. Henry S. Farber, 1981. "Splitting-the-Difference in Interest Arbitration," ILR Review, Cornell University, ILR School, vol. 35(1), pages 70-77, October.
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    Cited by:

    1. Yannick Gabuthy & Nicolas Jacquemet, 2013. "Analyse économique du droit et méthode expérimentale," PSE-Ecole d'économie de Paris (Postprint) halshs-00746617, HAL.
    2. repec:hal:wpaper:halshs-00746617 is not listed on IDEAS

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    More about this item

    Keywords

    Résolution des litiges; Économie expérimentale;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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