| Expedited negotiation | Adjudication |
| Mediator has no power to decide. No settlement imposed upon parties | Final and binding decision--arbitrator is given the power to decide. |
| Parties preserve control of outcome | Parties relinquish control of outcome |
| The need for discovery is minimal. Parties produce only that information they wish the other side to see. | Often requires extensive, preliminary discovery |
| Mediator helps the parties more clearly define and understand the issues and each side's interest | Arbitrator listens to facts and evidence and renders an award. |
| Parties able to vent feelings, tell story, engage in creative problem-solving | Parties present case, testify under oath. |
| Joint and private meetings | Evidentiary hearings |
| Outcome based on perceptions and needs of parties | Decision based on facts, evidence and law |
| Result is often mutually satisfactory resolution--relationship may be maintained or created | Result is win/lose award--valuable where outside decision-making is desired or needed. |
| Low-risk and cost effective | Often more expensive than mediation but less than traditional litigation. |
| Private and confidential | Private (but decisions are publicly available). |
source: NASD