Wednesday, May 29, 2013

The Psychological Barriers to Economically Efficient Civil Settlement and a Case for Third-Party Mediation

Heads I Win, Tails You Lose: The Psychological Barriers to Economically Efficient Civil Settlement and a Case for Third-Party Mediation, Comment [pdf] by Brian M. Spangler, Wisconsin Law Review, Volume 2012, No. 6
'This Comment, utilizing prospect theory, suggests that litigants are subject to a wide range of decision-making biases that affect their ability to reach economically rational and efficient settlements. These inherent psychological biases result in suboptimal, and ultimately unfair, civil settlements for all parties involved. This Comment proceeds to suggest that the use of third-party mediation promotes fairness and economic efficiency and eliminates many of the inherent biases that plague traditional civil settlement negotiations. ...'