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On the Selection of Arbitrators

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  • De Clippel, Geoffroy
  • Eliaz, Kfir
  • Knight, Brian

Abstract

A key feature of arbitration is the possibility for con icting par- ties to participate in the selection of the arbitrator, the individual who will rule the case. We analyze this problem of the selection of arbitrators from the perspective of implementation theory. In particular, theoretical analyses document problems with veto-rank, a simultaneous procedure that is commonly used in practice, and develop a new sequential procedure, shortlisting, with better proper- ties. Experimental results are consistent with the theoretical pre- dictions, highlighting both the disadvantages associated with the veto-rank procedure and the advantages associated with the short- lising procedure.

Suggested Citation

  • De Clippel, Geoffroy & Eliaz, Kfir & Knight, Brian, 2014. "On the Selection of Arbitrators," Foerder Institute for Economic Research Working Papers 275829, Tel-Aviv University > Foerder Institute for Economic Research.
  • Handle: RePEc:ags:isfiwp:275829
    DOI: 10.22004/ag.econ.275829
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    More about this item

    Keywords

    Financial Economics;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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