It is shown how a mediator can minimize the probability of costly disagreement by analyzing informational and participational incentive constraints and establishing the lowest probability of disagreement necessary to guarantee that the parties can trust each other's signals. It is suggested that a general understanding of these constraints, incentive compatibility, and efficiency, the revelation principle, interpersonal equity, inscrutable intertype compromise, and cost of time in bargaining all can aid in developing more effective mediation plans for dispute resolution. The mediator's role as an information buffer is discussed, as is the way in which the need to avoid mediator-bashing tactics may force a mediator to use a plan that tends to favor the strong types of each party. Also considered are the use of delay of trade as a signal in bargaining and the importance of standoff equilibria open-ended bargaining. 5 references. (Author abstract modified)