The mediator proposes a number and each party responds privately. The settlement occurs only if both accept, and if either rejects, neither learns the other's response.
It is typically used at impasse.
Alternative Names:
Mediator Proposal, Neutral Proposal
Why it Matters?
The confidential double-blind structure is what makes the device work, since a party can accept without revealing willingness if the other side declines, which removes the risk that acceptance signals weakness. Timing matters because a proposal made too early forecloses the negotiation, and mediators generally reserve it for genuine impasse. The proposal also converts the question from what the other side will pay to whether this number is acceptable.
Frequently Confused with
Related terms
Frequently asked questions
Why is the response confidential?
When is the device used?
