Alternative dispute resolution an economic analysis steven shavell abstract when parties need to resolve disputes they may often turn not only to trial before courts but also to alternative methods of dispute resolution adr such as arbitration this article examines why parties make use of adr and what the social interest is in adr a basic distinction is drawn between ex ante adr . Alternative dispute resolution adr refers to a set of practices and techniques aimed at permitting the resolution of legal disputes outside the courts it is normally thought to encompass. Normally it is though that dispute resolution being associated with rule of law is a subject to be studied within the domain of jurisprudence the economic analysis of adr is necessary to determine if adr actually is efficient and cost reducing system for this purpose some of the exemplary models have been discussed. Articleshavell1995alternativedr titlealternative dispute resolution an economic analysis authors shavell journalthe journal of legal studies year1995 volume24 pages1 28 s shavell published 1995 economics the journal of legal studies when parties need to resolve . E c18 2015 crp8 4 4 importantly this paper should not be seen as either pro arbitration or anti arbitration but as recognizing that more debate needs to be had about how countries wishing to