“Fair Outcomes”, an online system, offers an ingenious alternative to conflict resolution, based on the principles of game theory. The ABA journal has just published an article about it.
In contrast to litigation, arbitration, mediation, negotiation, and traditional sealed-bid/split-the difference arrangements, this system offers no incentive or excuse for either party to bluff or posture – or to try to posture through a refusal to use it.
The beauty is that it not only can save both parties an enormous amount of legal fees, but that the outcome is usually more favorable to each party than what that party
had proposed.
The system is very transparent and well documented, so if you’re interested in the topic, take some time to browse the website and think it through. If you prefer videos, here is a series of presentations that explain the underlying principles.