Second, the entity in charge of examining appeals must be independent of the micro-institution that is responsible for making or implementing decisions. Three possible mechanisms of appeal are commonly used: mediation, based on the common agreement to look for an acceptable settlement (e.g. through a conciliation commission), arbitration, which transfers decisions to independent parties, and courts. Costs tend to be higher for courts than for arbitration, and higher for arbitration than mediation. Other characteristics of institutions that are generally desirable are the capacity to coordinate and delegate, clear assignment of rights and responsibilities, involvement of stakeholders, methods of appeal, and capacity to promote good norms of behaviour (Table 2.2).