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.
“Key to the deal is a compromise on arbitration to resolve disputes between growers and millers.”
“This can pose problems at rent review, particularly if a case goes to arbitration.”
“But people are looking for a revitalisation of arbitration with a fixed timetable as a result of their experience with adjudication.”
arbiter
A person appointed, or chosen, by parties to determine a controversy between them; an arbitrator.
(of) A person or object having the power of judging and determining, or ordaining, without control; one whose power of deciding and governing is not limited.
“On certain points, I had to step down, as it were, from my unwitting, self-appointed role as arbiter and judge of all doctrine.”
“She was a renowned beauty, the darling of Lord Ansley, and considered an arbiter of what was fashionable.”
arbitrage
(finance) A market activity in which a security, commodity, currency or other tradable item is bought in one market and sold simultaneously in another, in order to profit from price differences between the markets.
“The investor executed a profitable arbitrage by purchasing stocks in the New York Stock Exchange and immediately selling them in the Tokyo Stock Exchange.”
“The arbitrariness of the lottery numbers being drawn is what makes it an exciting and unpredictable game.”
“The arbitrariness of the judge's ruling was evident, as it was based entirely on personal bias rather than any logical or fair reasoning.”
“The dictator governed the country with an unprecedented level of arbitrariness, making all decisions without any regard for the will or rights of the people.”
“Institutional shareholders including arbitrageurs traditionally do not respond to offers up until close to the deadline.”
“Professionals who engage in arbitrage are known as arbitrageurs.”
“In effect they act as regulatory arbitrageurs, reaping the rewards of fast-moving financial markets without the burden of the regulatory controls that banks face.”