Busting Arbitration Myths
15 Pages Posted: 5 Jul 2011
Date Written: July 3, 2011
This paper presents an arbitration version of the MythBusters television show. It employs a MythBusters-type approach - subjecting commonly held views to empirical testing - to examine several commonly held myths about arbitration. It finds: (1) the myth that the number of arbitration proceedings held in a country increases after it enacts a new arbitration statute is confirmed, although to nowhere near the extent predicted by some supporters of new arbitration laws; (2) the myth that parties commonly agree to have their disputes resolved under the new Law Merchant in lieu of national law is busted; and (3) the myth that arbitrators "split the baby" - i.e., make compromise awards - is busted as well.
Keywords: Arbitration, Dispute Resolution, Contracts
JEL Classification: K12, K41
Suggested Citation: Suggested Citation