Occasionally individuals or group representatives reach a stalemate and are unable to resolve their differences through direct negotiations. In such cases, they may turn to a third party to help them find a solution. There are three basic third-party roles: mediator, arbitrator, and conciliator. A mediator is a neutral third party who facilitates a negotiated solution by using reasoning and persuasion, suggesting alternatives. Mediators are widely used in labor–management negotiations and are fairly effective.

An arbitrator is a third party with the authority to dictate an agreement. Arbitration can be voluntary (requested by the parties) or compulsory (forced on the parties by law or contract). The big plus of arbitration over mediation is that it always results in a settlement. If one party is left feeling overwhelmingly defeated, that party is certain to be dissatisfied and the conflict may resurface at a later time.

A conciliator is a trusted third party who provides an informal communication link between the negotiator and the opponent. Comparing conciliation to mediation has proven difficult because the two overlap a great deal. In practice, conciliators also engage in fact finding, interpret messages, and help develop agreements.