What is the purpose of arbitration in decision-making?

The purpose of arbitration in decision-making is primarily to resolve a dispute. Arbitration is a formal process where an impartial third party, known as an arbitrator, is appointed to review the relevant facts and arguments presented by both parties involved in a disagreement. Once this evaluation is completed, the arbitrator makes a binding decision that both parties are required to accept. This process is often quicker and less expensive than a court trial and provides a structured means for parties to settle their conflicts.

In contexts where groups or individuals have conflicting interests or interpretations of agreements, arbitration serves as an essential mechanism to reach a resolution. It provides a fair and equitable way to handle disputes without escalating the situation or prolonging the conflict. In contrast, forming a coalition, lobbying for support, or conducting a referendum are processes associated with negotiating, advocating for change, or gathering public opinion, rather than resolving specific disputes.