Resolving Child Custody Disputes Efficiently
Nejat Anbarci  1@  , Gorkem Celik  2, 3, *@  
1 : Durham University Business School
2 : ESSEC Business School
ESSEC Business School
3 : Théorie économique, modélisation et applications  (THEMA)  -  Website
Centre National de la Recherche Scientifique : UMR8184, CY Cergy Paris Université
33, boulevard du Port 95011 Cergy-Pontoise Cedex -  France
* : Corresponding author

We study arbitration mechanisms for child custody arrangements in the shadow of a default court ruling that will be made without any consideration of the parents' preferences. We show that the ideal default custody, providing the best chances for the efficiency of arbitration, is not an extreme custody regime which assigns full custody to one of the parents. Instead it is the custody arrangement that maximizes the reservation payoffs of the most difficult parent types to persuade to forfeit this default custody arrangement and accept arbitration. As long as all involved parties' utility functions are concave, this result also generalizes to the multiple-parties cases where custody settlements require the consent of more parties than the two parents. Further, when parents have the quadratic disutility function, efficient arbitration is possible only under the ideal default custody, regardless of the parents' type distributions. This possibility result extends to the case where custody decisions involve more issues/dimensions than the share of the time that the children will spend with each parent. It also extends to the multiple-parties setting. Finally, we identify a class of utility functions that do not allow e¢ cient arbitration even under the ideal default custody.


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