The persons with the problem may have little or nothing to contribute to the outcome. Arbitration is quicker, less costly, and potentially more inclusive of the persons with the problem. However a decision is made by a disinterested third party and may address the instant problem while ignoring underlying causes of trouble. A well conducted mediation by knowledgeable persons can often, not only solve the problem at hand but also its causes. The reason is simple.
Mediation involves completely the people with the problem.
The problem belongs to them not the mediator, and the solution is entirely their solution. The mediator keeps the process going. Sometimes the participants think so. Compromise and collaboration is the essence of mediation. Compromise and collaboration seeks to discover the needs of the parties and put together a strategy to meet these needs while resting on consensus and equity.