| ▲ | charcircuit 2 hours ago | |
>is a repeat customer of that arbitration service Who is locked in by the contract. The arbitration company gets their fees no matter the outcome. >so it's hard to have confidence is fair You can appeal to a court if it's unfair. | ||
| ▲ | eli an hour ago | parent [-] | |
"We examine whether firms have an informational advantage in selecting arbitrators in consumer arbitration [...] We first document that some arbitrators are systematically industry friendly while others are consumer friendly. Firms appear to utilize this information in the arbitrator selection process. Despite a randomly generated list of potential arbitrators, industry-friendly arbitrators are forty percent more likely to be selected than their consumer friendly counterparts. Better informed firms and consumers choose more favorable arbitrators. [...] Competition between arbitrators exacerbates the informational advantage of firms in equilibrium resulting in all arbitrators slanting towards being industry friendly. Evidence suggests that limiting the respondent’s and claimant’s inputs over the arbitrator selection process could significantly improve outcomes for consumers." https://www.gsb.stanford.edu/faculty-research/working-papers... | ||