Mediation in situations of conflict and limited commitment

K Mitusch, R Strausz - Journal of Law, Economics, and …, 2005 - academic.oup.com
K Mitusch, R Strausz
Journal of Law, Economics, and organization, 2005academic.oup.com
We study the reasons and conditions under which mediation is beneficial when a principal
needs information from an agent to implement an action. Assuming a strong form of limited
commitment, the principal may employ a mediator who gathers information and makes
nonbinding proposals. We show that a partial revelation of information is more effective
through a mediator than through the agent himself. This implies that mediation is strictly
helpful if and only if the likelihood of a conflict of interest is positive but not too high. The …
Abstract
We study the reasons and conditions under which mediation is beneficial when a principal needs information from an agent to implement an action. Assuming a strong form of limited commitment, the principal may employ a mediator who gathers information and makes nonbinding proposals. We show that a partial revelation of information is more effective through a mediator than through the agent himself. This implies that mediation is strictly helpful if and only if the likelihood of a conflict of interest is positive but not too high. The value of mediation depends nonmonotonically on the degree of conflict. Our insights extend to general models of contracting with imperfect commitment.
Oxford University Press
以上显示的是最相近的搜索结果。 查看全部搜索结果