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

Author

Listed:
  • Onur Kesten

    (School of Economics, University of Sydney, Sydney, New South Wales 2050, Australia)

  • Selçuk Özyurt

    (Department of Economics, York University, Toronto, Ontario M3J 1P3, Canada)

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.

Suggested Citation

  • Onur Kesten & Selçuk Özyurt, 2025. "Strategy-Proof Multi-Issue Mediation: An Application to Online Dispute Resolution," Management Science, INFORMS, vol. 71(1), pages 678-693, January.
    • Handle: RePEc:inm:ormnsc:v:71:y:2025:i:1:p:678-693
    DOI: 10.1287/mnsc.2023.00383
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