The perception that arbitration is an expensive method remains common in the business community. In general, this view arises from a comparison limited to the direct costs of the proceedings: institutional fees, arbitrators’ fees, expert costs, logistics, and technical advisory expenses. When this assessment is made in isolation, particularly in comparison with the judiciary, arbitration tends to appear financially disadvantageous.
This reading, however, is incomplete.
The economic efficiency of arbitration should not be assessed on the basis of a single objective attribute, but rather on the combination of structural characteristics that, when analyzed together, may significantly reduce the total costs of a dispute. It is precisely this reasoning that distinguishes arbitration from traditional judicial proceedings.
Throughout this series, we have gradually explored these characteristics. Party autonomy allows the procedure to be tailored to the actual complexity of the dispute, avoiding unnecessary stages and unproductive formalities. The choice of specialized arbitrators reduces technical asymmetries and lowers the likelihood of erroneous decisions, which, from an economic standpoint, means less risk and fewer post-proceeding costs. Confidentiality protects sensitive business assets, such as reputation, commercial strategies, and technical information, preventing impacts that typically do not appear on a cost spreadsheet. Time efficiency, in turn, reduces opportunity costs and preserves the economic value of the assets involved.
It is the combination of these factors that supports the conclusion that arbitration may be more cost-effective than litigation. Not because its direct costs are necessarily lower, but because it tends to reduce the overall costs of the conflict. Economic and empirical studies indicate that arbitral fees and institutional costs usually represent only a fraction of the total cost of a dispute. In practice, the greater burden is associated with the duration of proceedings, unpredictability of decisions, immobilization of resources, and the operational impacts of prolonged disputes.
In the Brazilian context, these factors become even more relevant. The structural delays of the judiciary, multiple levels of jurisdiction, jurisprudential instability, and the limited specialization of judges in certain matters increase transaction costs. In capital-intensive sectors — such as construction, infrastructure, energy, and industrial supply — prolonged disputes compromise cash flow, keep guarantees tied up, affect project schedules, and hinder strategic decision-making.
By offering final decisions within more predictable timeframes, arbitration contributes to the quicker release of assets, reduction of capital costs, and greater certainty in business planning. From this perspective, the initial cost of the proceedings should not be viewed merely as another legal expense, but rather as an investment in efficiency and predictability.
The arbitral system itself allows for meaningful adjustments in cost and complexity. Expedited arbitration is a good example. It consists of a simplified procedure, generally applied to lower-value or less complex disputes, with shortened deadlines, limited procedural stages, and restrictions on extensive evidentiary production. In 2025, the School of International Arbitration at Queen Mary University of London published another edition of its International Arbitration Survey, entitled “The Path Forward: Realities and Opportunities in Arbitration,” which identifies cost reduction as one of the main reasons for its adoption, particularly where fees are fixed or capped, in the absence of in-person hearings, and with the elimination of extensive documentary phases.
It is important to emphasize that expedited arbitration does not, in itself, automatically transform arbitration into an inexpensive method. Rather, it highlights a key distinction from judicial proceedings: the possibility of calibrating procedure, time, and cost according to the dispute.
Through this broader perspective, arbitration also generates positive economic effects that go beyond the individual case. By reducing prolonged litigation, it contributes to better asset allocation and greater efficiency in the business environment. It is no coincidence that arbitration is recognized as a relevant instrument for reducing transaction costs and increasing productivity, particularly in economies marked by judicial overload and decision-making uncertainty.
The central point is that the analysis cannot be limited to the direct costs of the proceedings.
Ultimately, the relevant question is not whether arbitration is expensive or inexpensive in absolute terms, but whether it is capable of reducing the costs that matter most to the business when compared to the other available alternatives.
Queen Mary, White & Case e School of International Arbitration. 2025 International Arbitration Survey. The Path Foward: Realities and Opportunities in Arbitration, 2025.
NANI, Ana Paula Ribeiro; TIMM, Luciano Benetti. Arbitragem Vs. Judiciário: Uma Análise Econômica E Econômica-comportamental. Economic ANalisys of Law Review, v. 13, n. 3, p. 14-31. Brasília, 2022. Disponível em: https://portalrevistas.ucb.br/index.php/EALR/article/view/13474.
GAROFANI RAMOS, Giulia; GONÇALVES, Oksandro. Os custos de transação na Arbitragem. Revista de Formas Consensuais de Solução de Conflitos, v. 8, n. 2. Florianópolis, 2023. DOI: 10.26668/IndexLawJournals/2525-9679/2022.v8i2.9339. Disponível em: https://indexlaw.org/index.php/revistasolucoesconflitos/article/view/9339. Acesso em: 9 jan. 2026.
CAHALI, Francisco José. Curso de Arbitragem [livro eletrônico]: Mediação, Conciliação, Tribunal Multiportas. 6ª Ed. São Paulo: Thomson Reuters Brasil, 2018.
TIMM, Luciano Benetti; GUANDALINI, Bruno; RICHTER, Marcelo de Souza. Reflexões sobre uma análise econômica da ideia de Arbitragem no Brasil. In.: CARMONA, Carlos A.; LEMES, Selma F.; MARTINS, Pedro B. 20 Anos da Lei de Arbitragem – Homenagem a Petrônio R. Muniz – 1ª Edição 2017. Rio de Janeiro: Atlas, 2017. E-book. p.114. ISBN 9788597013276.
