The outcome in Arbitration and Mediation

In Mediation, the parties do not know the outcome. They just know that they will try to get a settlement, but it is uncertain if they will reach it or not. For this reason sometimes parties do not chose Mediation as the first option and go directly to Arbitration, since they think that they will just waste time and money and get out of there with nothing in their hands.

This perception could be avoided through reasonable disclosure of the advantages that Mediation offers to the disputants. If the parties realize that this process will have them better off, they will try and use it, even though there is no certainty of reaching an agreement. If the parties can understand that they are not loosing time and money trying to settle their dispute, but instead gaining them if they reach an agreement, then they will feel more optimistic about trying Mediation as a first option.