Negotiating Tip Sometimes it isn't possible to negotiate a satisfactory outcome. There may be a fundamental disagreement that no amount of give and take can re- solve. There may be no zone of potential agreement. This doesn't neces- sarily mean that differences must go unresolved. There are two other ways of settling differences: arbitration and mediation. Arbitration refers to the use of an impartial third party to hear both sides of a dispute and render a decision, which may or may not be binding. It may be helpful when both sides cannot or will not budge from their positions. Mediation is the attempt by an impartial third party to help dis- puting parties communicate, negotiate, and reach agreement. Unlike an arbitrator, a mediator is a facilitator; he or she does not decide the out- come. Mediation is generally voluntary and nonbinding. ? Think About It ... Have you ever fallen victim to irrational escalation? Have you ever observed someone else com- mitting this mental error? If you have, describe the situation and its outcome below. How do you think this situation could have been avoided