The main purpose of arbitration is to provide a private, efficient, and alternative method for resolving disputes outside of traditional court systems. It offers parties the opportunity to settle their disagreements in a more flexible and expedited manner, often with lower costs and greater confidentiality than litigation. Arbitration typically involves a neutral third party, called an arbitrator or a panel of arbitrators, who listen to both sides of the dispute and make a binding decision or award. It is commonly used in commercial, labor, and international disputes, among other areas, where parties prefer to avoid the complexities, delays, and public exposure associated with court proceedings.