Does Resorting to Online Dispute Resolution Promote Agreements ? Experimental Evidence
Yannick Gabuthy (yannick.gabuthy@univ-lorraine.fr),
Nicolas Jacquemet (nicolas.jacquemet@psemail.eu) and
Nadège Marchand (marchand@gate.cnrs.fr)
Additional contact information
Yannick Gabuthy: BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique
Nadège Marchand: GATE - Groupe d'analyse et de théorie économique - UL2 - Université Lumière - Lyon 2 - ENS LSH - Ecole Normale Supérieure Lettres et Sciences Humaines - CNRS - Centre National de la Recherche Scientifique
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Abstract:
This paper presents an experiment performed to test the properties of an innovative bargaining mechanism (called automated negotiation) used to resolve disputes arising from Internet-based transactions. The main result shows that the settlement rule tends to chill bargaining as it creates incentives for individuals to misrepresent their true valuations, which implies that automated negotiation is not able to promote agreements. However, this perverse effect depends strongly on the conflict situation. When the threat that a disagreement occurs is more credible, the strategic effect is reduced since defendants are more interested in maximizing the efficiency of a settlement than their own expected profit. The implications of these results are then used to discuss the potential role of public regulation and reputation mechanisms in Cyberspace.
Keywords: Online Dispute Resolution; Electronic Commerce; Bargaining; Arbitration; Experimental Economics (search for similar items in EconPapers)
Date: 2008-02
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00259453v1
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Citations: View citations in EconPapers (8)
Published in European Economic Review, 2008, 52 (2), pp.259-282. ⟨10.1016/j.euroecorev.2007.04.004⟩
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Journal Article: Does resorting to online dispute resolution promote agreements? Experimental evidence (2008)
Working Paper: Does Resorting to Online Dispute Resolution Promote Agreements ? Experimental Evidence (2008)
Working Paper: Does Resorting to Online Dispute Resolution Promote Agreements ? Experimental Evidence (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00259453
DOI: 10.1016/j.euroecorev.2007.04.004
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