An Experimental Evaluation of Online Dispute Resolution

Une évaluation expérimentale des modes électroniques de résolution des litiges

Yannick Gabuthy () and Nicolas Jacquemet ()
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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

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: The extensive development of the Internet and electronic commerce has resulted in the emergence of electronic methods of dispute resolution. The aim of this paper is to experimentally evaluate the economic performance of an innovative procedure, automated negotiation, which integrates technology as an active agent in the processing of conflicts. The parties' proposals are received and evaluated by computer software, which introduces a convergence mechanism into the negotiation process and determines the terms of an agreement according to a pre-defined rule. The results show that the parties are incentivized to strategically exploit this convergence mechanism in order to increase their gains, and that this greatly limits the effectiveness of the process. The threat of disagreement, however, associated with an increase in the degree of conflict between the parties, seems to limit this perverse effect, incentivizing the parties towards conciliation. The implications of these results allow us to discuss the potential role of public regulation and reputation mechanisms in the virtual world.

Keywords: Résolution des litiges; Économie expérimentale (search for similar items in EconPapers)
Date: 2007
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00259457v1
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Published in Revue Economique, 2007, 58 (6), pp.1309-1330. ⟨10.3917/reco.586.1309⟩

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Working Paper: An Experimental Evaluation of Online Dispute Resolution (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-00259457

DOI: 10.3917/reco.586.1309

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