Experts and arbitration outcomes: Insights from public procurement contract disputes

We explore the use of experts in arbitration proceedings by
analysing public procurement contract disputes in Italy.
Balancing cost with accuracy, participants to a contract
select arbitration when speedy dispute resolution is valued
highly. Alternative dispute resolution mechanisms tend to
give appointed arbitrators discretion in how to proceed.
Consequently, principal-agent problems can arise. Using an
inverse-probability-weighted approach, we show that the
use of an expert causes a slowing down of the case resolution,
without having an effect on the outcome of the dispute
nor resolving uncertainty as measured by unanimous
decisions by the panel of arbitrators. Conflict resolution
mechanism designers should consider the alignment of
incentives between the disputants and the service
providers.