The Rationale Behind Choosing Arbitration Over Litigation: A Law & Economics Perspective

In the contemporary globalised economy, popularity of arbitration as a dispute resolutionmethod has amplified. It has many advantageous features such as expertise of arbitrator,speedy procedure which lack in litigation, therebymaking arbitration the preferred mode of dispute resolution

The growth of arbitration is also credited to its stakeholders, namely the arbitrator(s) and the parties. The stakeholders take part in arbitration to derive maximum utility for themselves. They make decisions in the process which are backed by economic considerations. Cost and incentives become the major determinants, guiding their rationale supporting ‘the choice of arbitration’.

Recommended Citation

Priyansha Badoni and Dr. Faizanur Rahman (2025) "The Rationale Behind Choosing Arbitration Over Litigation: A Law & Economics Perspective", GNLU Journal of Law And Economics : Volume V 2022, Issue I
Available at: https://gnlu.ac.in/GJLE/Publications/The Rationale Behind Choosing Arbitration Over Litigation: A Law & Economics Perspective