The role of third party in compromise:

1. Arbitration: When the contending parties themselves are not able to resolve their differences they may resort to arbitration. Arbitration is a device for bringing about compromise in which a third party tries to bring about an end to the conflict. Here the decision of the third party is binding on both the parties. Labour management disputes, some political disputes are often resolved in this way.

2. Mediation: Mediation is more a kin to arbitration. This involves the introduction into the conflict of a neutral agent whose efforts are directed towards bringing about a peaceful settlements. But the mediator has no power to settle the conflict as but the mediator has no power to settle the conflict as such for his decisions are not binding on the parties.

3. Conciliation: Closely related to compromise is conciliation. This is an attempt to persuade the disputants to develop friendship and come to an agreement. Conciliation has been used in industrial, racial and religious struggles. Conciliation implies a milder response to an opponent than coercion. In the end conciliation, like toleration opens the door to assimilation.

4. Toleration: It is another form of accommodation in which the conflict are avoided rather than settled or resolved. Toleration is an outgrowth of the “live and let-live” policy. It is a form of accommodation without formal agreements. Here there is no settlements of difference but there is only the avoidance of over conflict. Each group tries to bear with the others. The groups realized that their differences are irreconcilable. Hence they decided to coexist with their differences. Racial groups castes political parties wedded to mutually opposite ideologies.

5. Conversion: This form of accommodation involves a sudden rejection of one’s beliefs, convictions and loyalties context to refer to one’s conversion into some other religion. This concept is now used in the literary, artistic, economic and political fields.

6. Sublimation: Adjustments by means of sublimation involves the substitution of non- aggressive attitudes and activates for aggressive ones. It may take place at the individual as well as at the group level. The method suggested by Gandhiji and most of the religious prophets to conquer violence and hatred by nonviolence, love and compassion is that of sublimation.

7. Rationalization: This involves excuses or explanations for one’s behavior. One is not prepared to acknowledge one’s failure or defects for its may indicate guilt or the need for change. Hence one blames other for one’s own fault. By ascribing one’s failure to others instead of accepting one’s own defects, one can retain self-respect.