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A Risk-Based Approach to Mandatory Arbitration

Scott Baker

Washington University in Saint Louis - School of Law

Oregon Law Review, Forthcoming

In this essay, I argue that employers view mandatory arbitration as a method of controlling the risk of discrimination lawsuits, much like employers view property insurance as a method of controlling the risk associated with a plant fire. Using a risk analysis, the essay reexamines (1) the repeat player effect in arbitration, (2) why employers do so well in the litigation of discrimination disputes, and (3) the adequacy requirement for arbitral forums. In particular, I consider whether mandatory arbitration accounts for the problems of moral hazard and adverse selection endemic to any risk management scheme.

Number of Pages in PDF File: 34

Keywords: mandatory arbitration, pre-dispute arbitration, employment discrimination

JEL Classification: J52, J71, K12

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Date posted: November 19, 2004  

Suggested Citation

Baker, Scott, A Risk-Based Approach to Mandatory Arbitration. Oregon Law Review, Forthcoming. Available at SSRN: http://ssrn.com/abstract=622922

Contact Information

Scott A. Baker (Contact Author)
Washington University in Saint Louis - School of Law ( email )
Campus Box 1120
St. Louis, MO 63130
United States
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