Economic Analysis of Alternative and Online Methods of Settling Commercial Disputes in the European Union

The article analyzes the economic impact of alternative (ADR) and online (ODR) methods of commercial dispute resolution on business efficiency at EU level.The study examines these mechanisms from the perspective of the economic analysis of law, assessing the extent to which they contribute to minimizing the overall costs of disputes compared to traditional court proceedings.The research employs a mixed methodology, combining the Shavell economic model on the analysis of voluntary and mandatory dispute resolution alternatives with an empirical assessment of statistical data on the implementation of the ADR Directive and the ODR Regulation in the EU Member States.The results indicate that out-of-court dispute resolution generates significant cost savings for consumers and traders by reducing settlement time, eliminating geographical barriers and reducing procedural formalism.The study also highlights challenges to the effective implementation of these methods, including digital exclusion, security issues and the lack of non-verbal communication in the online environment.The implications of the research are relevant for the optimization of European dispute resolution policies and for the development of business strategies to harness the economic benefits of ADR/ODR in the European commercial ecosystem.The study highlights the need for differentiated European policies on ex ante versus ex post agreements and proposes recommendations for optimizing the implementation of ADR/ODR in the context of the increasing digitalization of the European economy.

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Publication Details

Journal
International Journal of Humanities Social Sciences and Education
Published
2025-01-01
DOI
https://doi.org/10.20431/2349-0381.1204003
Citations
1
Primary Topic
European and International Law Studies
Type
article
Field-Weighted Citation Impact
8.52
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article

Economic Analysis of Alternative and Online Methods of Settling Commercial Disputes in the European Union

Betty Cohen-Tzedec
1 citations
International Journal of Humanities Social Sciences and Education
European and International Law Studies
8.52
article

Economic Analysis of Alternative and Online Methods of Settling Commercial Disputes in the European Union

Betty Cohen-Tzedec
article en
1 citations

Abstract

The article analyzes the economic impact of alternative (ADR) and online (ODR) methods of commercial dispute resolution on business efficiency at EU level.The study examines these mechanisms from the perspective of the economic analysis of law, assessing the extent to which they contribute to minimizing the overall costs of disputes compared to traditional court proceedings.The research employs a mixed methodology, combining the Shavell economic model on the analysis of voluntary and mandatory dispute resolution alternatives with an empirical assessment of statistical data on the implementation of the ADR Directive and the ODR Regulation in the EU Member States.The results indicate that out-of-court dispute resolution generates significant cost savings for consumers and traders by reducing settlement time, eliminating geographical barriers and reducing procedural formalism.The study also highlights challenges to the effective implementation of these methods, including digital exclusion, security issues and the lack of non-verbal communication in the online environment.The implications of the research are relevant for the optimization of European dispute resolution policies and for the development of business strategies to harness the economic benefits of ADR/ODR in the European commercial ecosystem.The study highlights the need for differentiated European policies on ex ante versus ex post agreements and proposes recommendations for optimizing the implementation of ADR/ODR in the context of the increasing digitalization of the European economy.

International Journal of Humanities Social Sciences and EducationVol. 12(4)
Bucharest University of Economic Studies (RO)
Openalex Percentile: Top 5%
European and International Law Studies
8.52
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Economic Analysis of Alternative and Online Methods of Settling Commercial Disputes in the European Union — Betty Cohen-Tzedec · International Journal of Humanities Social Sciences and Education (2025) | TGRS Research Map | TGRS