Daughety, Andrew F.; Reinganum, Jennifer F. - Vanderbilt University Department of Economics - 2009
then consider the effect of allowing preemptive settlement offers by the defendant aimed at discouraging follow-on suits …. Preemptive settlement results in a "gold rush" of cases into the first period. In general, plaintiffs (ex ante) strictly prefer … settlement. Finally, we consider partial unawareness of victims as to the source of harm; this provides a role for plaintiffs …