noun

1. The act or process of arbitrating.

2. A process through which two or more parties use an arbitrator or arbiter in order to resolve a dispute.

3. In general, a form of justice where both parties designate a person whose ruling they will accept formally. More specifically in Market Anarchist (market anarchy) theory, arbitration designates the process by which two agencies pre-negotiate a set of common rules in anticipation of cases where a customer from each agency is involved in a dispute.