Professor S.I. Strong, University of Missouri
How Sticky Defaults, Status Quo Bias and the Sovereign Prerogative Influence its Perception
Numerous empirical studies prove that international arbitration (meaning both international commercial and investment arbitration) offers a fair and unbiased means of resolving complex, high-value legal disputes through sophisticated, highly formal procedures that more closely resemble judicial procedures in commercial courts than domestic arbitration. However, critics routinely ignore this data and continue to question the validity of the procedure. Why?
Professor Strong‘s presentation will show how three phenomena – sticky defaults, status quo bias and the sovereign prerogative – work in tandem to create enduring but demonstrably incorrect perceptions about the legitimacy of international arbitration. She will further explain that interdisciplinary research also provides a potential solution in the form of a heuristic known as the Reversal Test, which acts as an objective diagnostic tool to identify the influence of unconscious cognitive distortions such as the status quo bias. Through this analysis, her presentation will not only address one of the core paradoxes in international dispute resolution but will also provide intriguing insights into policy debates in other fields.
Date: 21 March 2017, 13.00 - 15.00
The event will be hosted by Luther’s Hamburg office, Gänsemarkt 45, 20354 Hamburg. Registration is on a first come, first served basis and seats are limited.