Which conflict resolution method involves both parties agreeing to a third party’s decision?

Arbitration is a formal method of conflict resolution where disputing parties present their cases to a neutral third party, known as an arbitrator or an arbitral tribunal. Unlike mediation, where the third party facilitates discussion but does not make a decision, in arbitration, the arbitrator listens to all arguments and evidence, and then makes a binding decision or award. Both parties typically agree in advance to accept the arbitrator's decision as final and legally enforceable. This method is often chosen as an alternative to litigation (going to court) because it can be quicker, less formal, and more private. It is commonly used in commercial disputes, labor disputes, and international law. The arbitrator's role is to act as a private judge, rendering a definitive judgment based on the facts and applicable law.