A simple auction-theoretic framework is used to examine symmetric litigation environments where the legal ownership of …

different when there is open conflict than when there is settlement. In such environments we show that, as the future becomes … more important, open conflict becomes more likely than settlement. We demonstrate the theoretical robustness of this … finding, discuss its applicability in war, litigation, and other settings, and test it in a laboratory experiment. We find …

litigation costs and allow us to compute the pay-off matrix. We do not find evidence of a prisoner’s dilemma, given that the …

courts to examine the determinants of two salient adjudicatory outcomes: whether a case was resolved via trial or settlement … theory of litigation, we find that trial-based resolution is more likely when the case is complex and less likely when …

It is often argued that even if optimal ex-post, settlement dilutes deterrence ex-ante. We analyze the interest for the … tax authority of committing, ex-ante, to a settlement strategy. We show that to commit to the use of settlements is ex … settlement as a policy tool. …

This paper examines the strategic effects of case preparation in litigation. Specifically, it shows how the pretrial … then makes a settlement offer. Overinvestment, or bluff, always prevails in equilibrium: with positive probability …