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Mediation as Signal

By M.J. Holler and I. Lindner


This paper analyzes mediation as a signal. Starting from a stylized case, a game\ud theoretical model of one-sided incomplete information, taken from Cho and Kreps (1987), is\ud applied to discuss strategic effects of mediation. It turns out that to reject mediation can be\ud interpreted as a ”negative signal” while the interpretation of accepting or proposing mediation is\ud ambiguous and does not necessarily change the prior beliefs of the uninformed party. This\ud asymmetry suggests that, in equilibrium, there is an excess of mediation

Topics: mediation, litigation, signalling, equilibrium selection, C72, D82, K00
Publisher: Springer Netherlands
Year: 2004
OAI identifier:
Provided by: DSpace at VU

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