The Resolution of Karaoke Disputes: The Calculus of Institutions and Social Capital

Abstract

Commentators often assert that low levels of litigation in Japan are the result of either (a) social norms or (b) institutional and structural factors such as high litigation costs. This article examines another cause of nonlitigiousness: an alternative dispute resolution mechanism that handles many cases that might otherwise become lawsuits. While the system applies to all pollution disuptes, I examine a particular subset in detail: karaoke noise-related complaints. Relying on interviews and quantitative analyses in the karaoke context, I argue that an examination of both institutional factors and social capital (and their interaction) provides a significantly richer and more accurate account of Japanese dispute resolution patterns than one set of factors alone.

JEL Classification: K32, K41, Z13