AI applications will put an end to negotiation processes as we know them. The typical back-and-forth communication and haggling in a state of information insecurity could soon be a thing of the past. AI applications will increase the information level of the parties and drastically reduce transaction costs. A quick and predictable agreement in the middle of a visible bargaining range could become the new normal. But, sophisticated negotiators will shift this bargaining range to their advantage. They will automate negotiation moves and execute value-claiming strategies with precision, exploiting remaining information asymmetries to their advantage. Negotiations will no longer be open-ended communication processes. They will become machine-driven chess endgames. Large businesses will have the upper hand in these endgames.
Arbitration
The thriving mobile-based ride-sharing and food-delivery business in the United States has proven to be fertile grounds for litigation.
Thanks to Jack Barceló, Omri Ben-Shahar, Christopher Drahozal, Lee Fennell, Philip J. Loree, Jr, Paul Bennett Marrow, Judge Richard Mosk, and Stephen Ware for helpful comments. Thanks also to Joseph Parish for helpful research assistance.
Sincere thanks to Ed Brunet, Arthur Bryant, Sergio Campos, Howard Erichson, Brian Fitzpatrick, Samuel Issacharoff, Margaret Lemos, David Marcus, Geoffrey Miller, Alexander Reinert, Judith Resnik, Charles Silver, Alex Stein, Stewart Sterk, Jean Sternlight, James Tierney, Stephen Ware, and Adam Zimmerman, as well as participants in the Cardozo Law School summer brown bag series, for thoughtful comments. All errors are our own.
I am grateful to Michael Abramowicz, Oren Bar-Gill, Ryan Bubb, William Hubbard, Adam Levitin, Hans-Wolfgang Micklitz, Barak Richman, Raaj Sah, Sonja Starr, David Weisbach, Lauren Willis, Kathy Zeiler, and workshop participants at Boston University, The University of Chicago, the Institute for Advanced Study in Berlin, Northwestern University, Sciences Po in Paris, and the University of Toronto for commenting on an earlier draft, and to Irit Brodsky and Holly Newell for research assistance.
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