Effecient and incentive compatible community mediation

Official URL: http://risc01.sabanciuniv.edu/record=b2311563_ (Table of contents)

Mediation is a highly popular alternative dispute resolution system and a growing industry. I analyze mediation as a mechanism design problem and construct an individually rational, efficient and incentive compatible mediation rule for a community when preferences over alternatives are common knowledge and ranking of the outside option is not. Different than Kesten and Özyurt (2019), this paper offers a mechanism when the dispute occurs among a community which has more than two parties. If there exist a single issue to dispute, we cannot construct the intended mediation rule. However, if there are more than one issue to dispute, under some assumptions we can find a possibility result