# kaal:claim:617681-037

**Claim.** Compensating arbitrators by the number of cases they hear gives litigants a substantial role in shaping the system but may yield decisions so eager to please all parties that they lack decisiveness, sound reasoning and value as precedent.

**Type.** failure  **Support.** argued

**Holds when.**

- conventional arbitration in which litigants select and pay arbitrators

**Source quote.**

> This approach gives litigants a substantial role in shaping the arbitration system, but may result in decisions that are so eager to please all parties that they lack decisiveness or sound legal reasoning and thus lack value as precedent.

**From.** Christian Kirchner, Richard W. Painter, Wulf A. Kaal, *Regulatory Competition in EU Corporate Law after Inspire Art Unbundling Delaware's Product for Euro* (2004), E.III.1 A General Framework for Arbitration of Corporate Law in Europe, page 41

**Cite as.** Christian Kirchner, Richard W. Painter, Wulf A. Kaal, Regulatory Competition in EU Corporate Law after Inspire Art Unbundling Delaware's Product for Euro (2004). SSRN: https://ssrn.com/abstract=617681

**Verify.** sha256 of source PDF `e142130507ea2f5b025fd97b3f762d44ee3a7aaa82b155aab63434b85e8fd834` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kirchner%20et%20al.%20-%202004%20-%20Regulatory%20Competition%20in%20EU%20Corporate%20Law%20after%20Inspire%20Art%20Unbundling%20Delaware%27s%20Product%20for%20Euro.pdf

**Failure mode.** split-the-difference-arbitration  (family: staking-and-incentive-misalignment)

**Topics.** risk-and-incentives, law-and-legal-systems

**Keywords.** arbitrator-incentives, precedent, arbitration-design, split-the-difference

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