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Freedom to bargain and disputes’ resolution

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  • Yannick Gabuthy

  • Eve-Angéline Lambert

Abstract

When two parties are embedded in a dispute, they generally have the possibility to bargain before an external solution is imposed to them, notably through alternative dispute resolution. This bargaining phase may either result from a choice of disputants to negotiate or be imposed by laws or legal contracts. The aim of this paper is to analyze the differences in terms of parties’ bargaining behavior, depending upon the fact that bargaining has been imposed to them or comes from their own will. We conduct an experimental analysis and find out that, under some conditions, a procedure in which parties are forced to bargain leads to more agreements than when parties are free whether to do so. This main result is interpreted in the light of behavioral economics. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Yannick Gabuthy & Eve-Angéline Lambert, 2013. "Freedom to bargain and disputes’ resolution," European Journal of Law and Economics, Springer, vol. 36(2), pages 373-388, October.
    • Handle: RePEc:kap:ejlwec:v:36:y:2013:i:2:p:373-388
    DOI: 10.1007/s10657-013-9382-3
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    References listed on IDEAS

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    Cited by:

    1. Lambert, Eve-Angéline & Peterle, Emmanuel & Tisserand, Jean-Christian, 2019. "Pretrial settlement and coercion: An experiment," International Review of Law and Economics, Elsevier, vol. 60(C).

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    Keywords

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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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