Negotiation vs. Arbitration — What's the Difference?

Negotiation is a dialogue between two or more people or parties intended to reach a beneficial outcome over one or more issues where a conflict exists with respect to at least one of these issues. Negotiation is an interaction and process between entities who aspire to agree on matters of mutual interest, while optimizing their individual utilities.

Arbitration, a form of alternative dispute resolution (ADR), is a way to resolve disputes outside the judiciary courts. The dispute will be decided by one or more persons (the 'arbitrators', 'arbiters' or 'arbitral tribunal'), which renders the 'arbitration award'.

Discussion aimed at reaching an agreement

The use of an arbitrator to settle a dispute

The action or process of transferring legal ownership of a document.

The process by which the parties to a dispute submit their differences to the judgment of an impartial person or group appointed by mutual consent or statutory provision.

The act or process of negotiating

The act or process of arbitrating.

The transfer of a negotiable instrument.

A process through which two or more parties use an arbitrator or arbiter in order to resolve a dispute.

The process of achieving agreement through discussion.

In general, a form of justice where both parties designate a person whose ruling they will accept formally. More specifically in Market Anarchist (market anarchy) theory, arbitration designates the process by which two agencies pre-negotiate a set of common rules in anticipation of cases where a customer from each agency is involved in a dispute.

The act or process of negotiating; a treating with another respecting sale or purchase. etc.

The hearing and determination of a cause between parties in controversy, by a person or persons chosen by the parties.

Hence, mercantile business; trading.

(law) the hearing and determination of a dispute by an impartial referee agreed to by both parties (often used to settle disputes between labor and management)

The transaction of business between nations; the mutual intercourse of governments by diplomatic agents, in making treaties, composing difference, etc.; as, the negotiations at Ghent.

The act of deciding as an arbiter; giving authoritative judgment;

A discussion intended to produce an agreement;

The activity or business of negotiating an agreement; coming to terms