The game theory behind resolving online disputes | with Selçuk Özyurt
Nov 18, 2024
auto_awesome
Selçuk Özyurt, an Associate Professor of Economics at York University, shares his expertise on game theory and online dispute resolution. He delves into the effectiveness of human versus algorithmic mediation, highlighting the nuances in design and theoretical properties. The conversation explores the evolution of online mediation mechanisms, emphasizing strategy proofness and efficiency as crucial elements. Selçuk also discusses the vital role of neutral mediators in navigating complex emotional disputes. His insights bridge the gap between theory and practical application in conflict resolution.
Effective online dispute resolution mechanisms must be strategy-proof and efficient to handle complex multi-issue disputes fairly.
Mediation plays a critical role in resolving conflicts by facilitating communication and alleviating psychological barriers between disputing parties.
Deep dives
The Role of Mediation in Dispute Resolution
Mediation serves as a crucial mechanism for resolving disputes by introducing a neutral third party to facilitate communication between conflicting parties. This third party helps to alleviate psychological barriers that may prevent effective negotiation, especially in emotionally charged situations such as divorce. The podcast highlights that mediators are essential when parties struggle to communicate their core issues due to negative feelings or distrust. By restoring communication and fostering a more open dialogue, mediators enable disputants to navigate complex interactions that may otherwise lead to unresolved conflicts.
The Evolution of Online Dispute Resolution
The field of online dispute resolution (ODR) has emerged as a critical solution for handling conflicts in the digital age, particularly as e-commerce has grown. The podcast discusses how the rise of platforms like eBay in the 1990s highlighted the need for effective dispute resolution mechanisms between parties located in different jurisdictions. ODR leverages automated systems and algorithms to help parties present their positions and reach agreements, addressing the unique challenges of anonymity and geographical separation in online transactions. This evolution signifies a shift in how disputes are resolved and opens up new research avenues for game theorists and practitioners alike.
Designing Effective Mediation Algorithms
The discussion details the complexities involved in designing effective mediation mechanisms, especially in multi-issue disputes. The guest emphasizes that strategy-proofness, where participants prefer to reveal the truth rather than manipulate the system, is vital for the effectiveness of these algorithms. The importance of having at least two issues in negotiation—where one may hold asymmetric information—is also highlighted as necessary for bypassing the limitations of single-issue negotiation frameworks. By exploring these theoretical underpinnings, the researchers aim to develop mechanisms that can efficiently resolve disputes while also being robust against attempts to game the system.
In this episode, we dive into the world of online mediation mechanisms and how they can resolve disputes in digital marketplaces. As online transactions become more global and complex, the need for efficient, strategy-proof systems to mediate conflicts has never been more crucial. Selçuk Özyurt explains how these mechanisms should be designed to handle disputes fairly. In this context, we discuss properties like strategy proofness and efficiency and Selçuk explains under which conditions mediation mechanisms exist that fulfil these conditions.
Selçuk Özyurt is an Associate Professor of Economics at York University, with a research focus on game theory, mechanism and market design, and conflict resolution. The content of this episode is based on his paper Strategy-proof Multi-Issue Mediation: An Application to Online Dispute Resolution, which he co-authored with Onur Kesten.
---
Christmas raffle To participate in our Christmas raffle, just send an email to gamechanger@tws-partners.com and let us know which book you want to win. Deadline of the raffle is 15 December 2024.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode