Does Automated Online Dispute Resolution Promote the Development of New Negotiation Strategies?

Deffains, Bruno

Does Automated Online Dispute Resolution Promote the Development of New Negotiation Strategies? - 2008.


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The purpose of this paper is to show how economics analyze the pre-trial bargaining behavior of conflicting parties. The literature on the topic focuses on the way in which the mere presence of a third person during negotiations may drive the bargaining strategies chosen by the parties. More specifically, this paper analyses an innovative settlement method, called “cyber-negotiation,” which introduces technology as a third party in the dispute: the parties’ proposals are received and evaluated by an automated algorithm that provides a convergence mechanism in the bargaining process and pronounces a decision according to a given settlement rule. Analyses outlined in this article aim to determine whether resorting to this mechanism promotes the reaching of agreement.

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