Arbitration from a Law & Economics Perspective

Draft for THE OXFORD HANDBOOK OF INTERNATIONAL ARBITRATION, Thomas Schultz & Federico Ortino (eds.), Oxford University Press

U of St.Gallen Law & Economics Working Paper No. 2016-07

Hebrew University of Jerusalem International Law Forum Working Series 07-16

Hebrew University of Jerusalem Legal Research Paper, 16-37

28 Pages Posted: 28 Oct 2016 Last revised: 1 Nov 2016

See all articles by Anne van Aaken

Anne van Aaken

University of Hamburg, Law School; Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods

Tomer Broude

Hebrew University of Jerusalem - International Law Forum

Multiple version iconThere are 2 versions of this paper

Date Written: October 28, 2016

Abstract

International arbitration and Law & Economics (L&E) have two things in common. They have both been on the rise in the last decades; and they are both hotly contested and discussed in all their facets. 15 years ago, it was lamented that L&E had neglected (international) arbitration to large extent, focusing instead on judicial contexts. This chapter analysis international arbitration from an L&E perspective, including subsequent developments by behavioral economics relevant to arbitration.

After providing a general institutional economics perspective on arbitration, we go into greater detail concerning some questions where L&E can contribute by focusing on disputants involved in arbitration, their incentives and decision-making, including among types of dispute settlement, arbitrator appointment, incentives for settlement and third-party funding. We also discuss the incentives and behavior of arbitrators, including their cognitive abilities.

Keywords: International Arbitration, Law & Economics, Behavioral Economics, arbitrator appointment, third party funding

Suggested Citation

van Aaken, Anne and Broude, Tomer, Arbitration from a Law & Economics Perspective (October 28, 2016). Draft for THE OXFORD HANDBOOK OF INTERNATIONAL ARBITRATION, Thomas Schultz & Federico Ortino (eds.), Oxford University Press ; U of St.Gallen Law & Economics Working Paper No. 2016-07; Hebrew University of Jerusalem International Law Forum Working Series 07-16 ; Hebrew University of Jerusalem Legal Research Paper, 16-37. Available at SSRN: https://ssrn.com/abstract=2860584 or http://dx.doi.org/10.2139/ssrn.2860584

Anne Van Aaken

University of Hamburg, Law School ( email )

Johnsallee 35
Hamburg, 20148
Germany

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods ( email )

Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany

Tomer Broude (Contact Author)

Hebrew University of Jerusalem - International Law Forum ( email )

Mount Scopus
Mount Scopus, IL 91905
Israel

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