Nikitin, Maxim; Landeo, Claudia M. - Econometric Society - 2004
) theoretical framework on litigation by explicitly modeling frivolous lawsuits. In this way, we capture the main welfare effects of … punitive awards on firm's level of care and the likelihood of frivolous lawsuits. We derive sufficient conditions for a unique … negligent, but some meet the negligence standard. In this equilibrium, some lawsuits are not meritorious (frivolous lawsuits …