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Biased mediation: Selection and effectiveness

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  • Kim, Jin Yeub
  • Lee, Jong Jae

Abstract

This paper presents a theory of mediator selection in conflicts that compares biased and unbiased mediation. We characterize optimal mechanisms used by biased mediators when they are selected into mediation, and determine when and how parties in dispute accept a biased mediator in equilibrium. We find that when asymmetric information is significant, parties accept biased mediation as long as the degree of mediator bias is not too strong. Biased mediators care more about the payoffs of their favored party. Nevertheless, we find that biased mediators can be equally effective in promoting peace as the unbiased mediator. This is because biased mediators use recommendation strategies that allocate more shares of resource to their favored party while providing a higher chance of peaceful settlement to a weaker type of their disfavored party.

Suggested Citation

  • Kim, Jin Yeub & Lee, Jong Jae, 2025. "Biased mediation: Selection and effectiveness," Journal of Economic Theory, Elsevier, vol. 229(C).
    • Handle: RePEc:eee:jetheo:v:229:y:2025:i:c:s0022053125001152
    DOI: 10.1016/j.jet.2025.106069
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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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