Strategy-Proof Multi-Issue Mediation: An Application to Online Dispute Resolution

Onur Kesten () and Selcuk Ozyurt
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Onur Kesten: School of Economics, University of Sydney, Sydney, New South Wales 2050, Australia

Management Science, 2025, vol. 71, issue 1, 678-693

Abstract: Mediation (assisted negotiation) is the preferred alternative dispute resolution approach that has given rise to a multibillion-dollar industry worldwide. Online dispute resolution (ODR) providers rely heavily on mechanized e-negotiation systems. Inspired by their structured negotiation systems, we follow a market design approach and develop a tractable framework in search of strategy-proof, efficient, and individually rational mediation mechanisms. We characterize the full family of such mechanisms and the domains of preferences in which they exist. A necessary and sufficient condition for the existence of such protocols is the so-called quid pro quo property; a weak condition that formulates preferences for compromise solutions.

Keywords: mechanism design; economics: game theory and bargaining theory; online dispute resolution; e-negotiation systems; mediation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:71:y:2025:i:1:p:678-693

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