An Alternative means of conflict resolution model: arbitration and restorative justice

Abstract

Based on economic analysis of criminal law, we present a model of alternative justice methods that includes arbiters. Through these restorative justice solutions, agents achieve ex-ante Pareto improvements. We focus on the intuitions behind the complexities related to strategic interactions and discuss potential simulations as well as social welfare implications and behavioral concerns. Although we postpone discussions on technical details throughout the model, we include several simplifying alternatives and extensions. We conclude with a discussion on how our modeling can serve as a theoretical framework for empirical research on restorative justice programs and mechanism design on alternative justice methods.