Adversarial and Inquisitorial Procedures in Arbitration
Should arbitrators adjudicate on the basis of their own investigations, or invite the interested parties to make their cases and decide on the basis of the information so gathered? I call the former the inquisitorial procedure in arbitration and the latter the adversarial procedure. I conduct a welfare comparison of the two procedures by constructing a game-theoretic model of decision making by an arbitrator in the face of self-interested reporting strategies by the interested parties. Even if it is assumed that the arbitrator is, on average, as well informed as the two opposing parties, the adversarial procedure is strictly superior. The source of this superiority lies in a non-convexity in the adversarial procedure. There are increasing marginal returns to improvements in the information of an interested party. There are no analogous increasing returns to the arbitrator’s information under the inquisitorial procedure.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
|Date of creation:||Oct 1997|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:1722. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.