Consensual Online dispute resolution

1 consensual

1.1 automated negotiation
1.2 assisted negotiation
1.3 expedient non-adjudicative online resolution
1.4 crowdjustice

consensual
automated negotiation

automated negotiation relates methods in technology takes on (aspects of) negotiation. of odr services in area so-called blind-bidding services. negotiation process designed determine economic settlements claims in liability not challenged. blind bidding service may thought of type of auction mechanism or information players bids hidden. there 2 forms of automated negotiation, double blind bidding, method single monetary issues between 2 parties, , visual blind bidding, can applied negotiations number of parties , issues.

double blind bidding

double blind bidding negotiation method 2 parties offer , demand kept hidden during negotiation. commences when 1 party invites other negotiate amount of money in dispute. if other party agrees, start blind bidding process whereby both parties make secret offers or bids, disclosed if both offers match standards. can submit 3 offers , if bids of both parties come within predetermined range (usually range 30% 5%) or given amount of money (e.g. €3,000), technology automatically settles dispute in midpoint of 2 offers. although, simple method, encourages parties reveal bottom line offers , demands, splitting difference when amounts close.

visual blind bidding

the primary distinction of visual blind bidding in kept hidden other parties. in traditional double blind bidding, offers , demands kept hidden, whereas visual blind bidding kept hidden each party willing accept. method can applied simplest single-value negotiations or complex negotiations between number of parties , issues.

visual blind bidding commences when parties agree negotiate 1 another. start process exchanging visible optimistic proposals, define negotiating ranges. system generates suggestions fall within negotiating ranges. parties may continue exchange visible proposals or contribute own suggestions mix. suggestions contributed parties remain anonymous, avoiding face saving problem of accepting suggestion made party.

a resolution declared system @ end of negotiating session if parties have accepted 1 or more packages (of 1 or more proposed decision values) @ end of session. of packages becomes agreement may determined algorithm rewards party moves soonest zone of agreement. algorithm thought encourage concessions , indicate willing accept fair outcome. in contrast chilling effect occurs more common split-the-difference algorithm.

automated negotiation has proven particularly successful insurance compensations , commercial activities. valuable tool lawyers because can use without revealing re willing accept (unless agreement reached) , more importantly, without waiving right access court, in case negotiation unsuccessful.

thus, odr useful resolving brick , mortar disputes arise in businesses, insurance companies , municipalities, finding odr saves them money , time when dealing b2c disputes.

assisted negotiation

in assisted negotiation technology assists negotiation process between parties. technology has similar role mediator in mediation. role of technology may provide process and/or provide parties specific (evaluative) advice.

mediators use information management skills encouraging parties reach amicable agreement enabling them communicate more through rephrasing of arguments. conciliation similar mediation, conciliator can propose solutions parties consider before agreement reached. also, assisted negotiation procedures designed improve parties communications through assistance of third party or software. in fact, has been argued assisted negotiation, conciliation, , facilitation, different words mediation. major advantages of these processes, when used online, informality, simplicity , user friendliness.

squaretrade

the leading odr provider consumer mediation until squaretrade. contracted number of market places, largest of ebay. however, due changes in ebay feedback system in may 2008, squaretrade decided stop resolving ebay feedback disputes june 2008. squaretrade continues providing services ebay users, such warranty services , trustmark program. appears in last year these services have been taken on ebay , paypal dispute resolution services, results on these services still scarce.

squaretrade did not handle disputes between users , ebay, between sellers , buyers on ebay. squaretrade offered 2 levels of dispute resolution: assisted negotiation , mediation. squaretrade used after ebay s own consumer satisfaction process. in last few years, squaretrade has resolved millions of disputes across 120 countries in 5 different languages.

the advantage of dealing large number of disputes same issues arise many times, possible divide disputes different sections. squaretrade process started when buyer or seller filed complaint. so, claimant asked fill out web-based standard claim form identified type of dispute , presented list of common solutions, claimant selected ones agreed to. other party contacted email informed squaretrade process, , asked whether wished participate. parties keen on participating because manner buyer redress , seller positive feedback. other party filed response, selecting resolutions. if both parties agreed on same resolution, dispute resolved. when agreement not reached, parties put negotiation environment. web interface used shape communications constructive , polite negotiation. achieved software tools limited free text space, encouraged proposition of agreements, set deadlines , shaped tone of exchanges.

this software key element of process because took on of expertise of third party. process defined mediated negotiation . according rabinovich-einy, squaretrade technology,

intervenes in negotiations between parties and, allowing parties formulate , reformulate problem , solution, performs of associated mediator s role, moving parties problem mode solution stance.

most disputes (over 80 percent) resolved during first 2 stages, impressive success rate given in majority of cases, parties had been involved in type of failed direct negotiation before engaging squaretrade. in rest of cases mediator requested nominal fee, acting expert evaluator or conciliator made settlement proposals parties. second stage involved payment of 29.95 usd fee. according squaretrade, [a] sophisticated case management technology enables mediators handle lower medium-value consumer disputes in efficient cost effective manner. appointed mediator proposed solutions, if required parties so. agreements kept confidential squaretrade, , became binding contracts.

squaretrade has proven processes such online negotiation , online mediation can efficient tools resolve e-commerce disputes. 1 of key issues success of squaretrade simplicity , convenience of service. in addition, squaretrade services ebay concentrated on reduced number of issues, such delays, bad descriptions , negative feedback. made possible development of efficient automatic process enhanced online negotiation. success of consensual , automated processes depends on nature of dispute, accuracy of information provided, , capability of software or third neutral party in assessing , evaluating facts , evidence. squaretrade particularly effective because introduced incentives encourage parties participation; i.e. both parties wished resolve dispute: sellers want obtain positive feedback , buyers want redress.in general terms, widening scope of clients claims global market invites variables play: cultural differences, such high , low culture perceptions , cross-cultural variations of constitutes customer satisfaction experience.

expedient non-adjudicative online resolution

another form of alternative dispute resolution prioritizes expedience , dispenses adjudication together, in recognition of litigants desire dispose of matter possible. removing hint of adjudication, services (e.g., 1 day decisions) fast track version similar blind bidding restricted privately 2 parties , algorithm determines fair value accepted each party. unlike other services, once accepted both parties, settlement amount applied issuance of certificate of final resolution both parties accept irrevocable proof of resolution , final settlement. avoiding adjudication, expedient non-adjudicative online resolution saves litigants time in court, time away work , other fees , expenses, while protecting each ancillary damage: winning party collects more of disputed amount , losing party suffers no credit damage having judgment entered against him. expedient non-adjudicative online resolution utilized in cases might otherwise heard in small claims or limited civil matters.

crowdjustice

as alternative private, professional settlement, concept of crowdjustice has taken shape means leverage social norms , wisdom of crowds determine outcome of dispute. concept forms basis odr platform ujuj. ujuj (pronounced judge ) patent pending online alternative small claims court allows parties small claims case create arguments on video , upload them ujuj web site internet public vote on outcome. parties case, known claimant , respondent, agree, through electronically signed contract, bound final outcome determined jury consisting of internet public. registered users select open cases, view video arguments of claimant , respondent, , cast vote on sliding scale 0% 100%, represents amount user feels should awarded based on amount claimed claimant. vote added other votes on case , upon case expiration, average vote calculated votes received. average multiplied amount claimed determine final award.