The paper focuses on the organization of institutions designed to
resolve disputes between two parties, when some information is not
veri…able and decision makers may have vested preferences. It shows
that the choice of how much discretional power to grant to the decision
maker and who provides the information are intrinsically related. Direct
involvement of the interested parties in the supply of information
enhances monitoring over the decision maker, although at the cost of
higher manipulation. Thus, it is desirable when the decision maker is
granted high discretion. On the contrary, when the decision maker has
limited discretional power, information provision is better assigned to
an agent with no direct stake. The analysis helps to rationalize some
organizational arrangements that are commonly observed in the context
of judicial and antitrust decision-makin