IDEAS home Printed from
   My bibliography  Save this paper

Compulsory Non-binding ADR


  • Nathalie Chappe

    () (CRESE, Université de Franche-Comté)


This article focuses on compulsory non-binding ADR when third parties have reputation concerns that make them dislike their decision be rejected by the adversary parties who in this event decide to insist on a court verdict. The third party is assumed to trade-off deviations from her favored decision and the possibility that her recommendation might be rejected by the parties. Given that non binding ADR takes place in the shadow of a court verdict, the third party's award might be diverted from her preferred outcome in the direction of the likely court ruling.

Suggested Citation

  • Nathalie Chappe, 2013. "Compulsory Non-binding ADR," Working Papers 2013-07, CRESE.
  • Handle: RePEc:crb:wpaper:2013-07

    Download full text from publisher

    File URL:
    File Function: First version, 2013
    Download Restriction: no

    References listed on IDEAS

    1. Daniel M. Klerman, 2005. "The Value of Judicial Independence: Evidence from Eighteenth Century England," American Law and Economics Review, Oxford University Press, vol. 7(1), pages 1-27.
    2. David Friedman, 1999. "Why Not Hang Them All: The Virtues of Inefficient Punishment," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 259-269, December.
    3. Nuno Garoupa & Daniel Klerman, 2002. "Optimal Law Enforcement with a Rent-Seeking Government," American Law and Economics Review, Oxford University Press, vol. 4(1), pages 116-140, January.
    4. Andrew Dyke, 2007. "Electoral cycles in the administration of criminal justice," Public Choice, Springer, vol. 133(3), pages 417-437, December.
    5. Alberto Alesina & Guido Tabellini, 2007. "Bureaucrats or Politicians? Part I: A Single Policy Task," American Economic Review, American Economic Association, vol. 97(1), pages 169-179, March.
    6. Steven Shavell & A. Mitchell Polinsky, 2000. "The Economic Theory of Public Enforcement of Law," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 45-76, March.
    7. Rafael La Porta & Florencio Lopez-de-Silanes & Cristian Pop-Eleches & Andrei Shleifer, 2004. "Judicial Checks and Balances," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 445-470, April.
    8. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters,in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
    9. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135-135.
    10. Eric Maskin & Jean Tirole, 2004. "The Politician and the Judge: Accountability in Government," American Economic Review, American Economic Association, vol. 94(4), pages 1034-1054, September.
    11. Gradstein, Mark, 1993. "Rent Seeking and the Provision of Public Goods," Economic Journal, Royal Economic Society, vol. 103(420), pages 1236-1243, September.
    12. Ingolf Dittmann, 2006. "The Optimal Use of Fines and Imprisonment If Governments Do Not Maximize Welfare," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(4), pages 677-695, October.
    13. Jennifer Reinganum, 2000. "Sentencing Guidelines, Judicial Discretion, and Plea Bargaining," RAND Journal of Economics, The RAND Corporation, vol. 31(1), pages 62-81, Spring.
    14. Louis Kaplow & Steven Shavell, 2001. "Any Non-welfarist Method of Policy Assessment Violates the Pareto Principle," Journal of Political Economy, University of Chicago Press, vol. 109(2), pages 281-286, April.
    15. Meloni, Osvaldo, 2012. "Is there an electoral-motivated crime rate cycle? Evidence from Argentina," MPRA Paper 40177, University Library of Munich, Germany.
    16. Gary S. Becker & George J. Stigler, 1974. "Law Enforcement, Malfeasance, and Compensation of Enforcers," The Journal of Legal Studies, University of Chicago Press, vol. 3(1), pages 1-18, January.
    17. F. Andrew Hanssen, 2004. "Is There a Politically Optimal Level of Judicial Independence?," American Economic Review, American Economic Association, vol. 94(3), pages 712-729, June.
    18. Lin, Ming-Jen, 2007. "Does democracy increase crime? The evidence from international data," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 467-483, September.
    19. Carlos Berdejó & Noam Yuchtman, 2013. "Crime, Punishment, and Politics: An Analysis of Political Cycles in Criminal Sentencing," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 741-756, July.
    20. Roger Bowles & Michael Faure & Nuno Garoupa, 2008. "The scope of criminal law and criminal sanctions: An economic view and policy implications," Working Papers 2008-03, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
    Full references (including those not matched with items on IDEAS)

    More about this item


    litigation; non-binding; arbitration; reputation; Alternative Dispute Resolution.;

    JEL classification:

    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:crb:wpaper:2013-07. 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: (Christian At). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.