Che, Yeon-Koo; Spier, Kathryn E. - In: Journal of Institutional and Theoretical Economics (JITE) 164 (2008) 1, pp. 4-23
This paper considers settlement negotiations between a single defendant and N plaintiffs when there are fixed costs of litigation. When making simultaneous take-it-or-leave-it offers to the plaintiffs, the defendant adopts a divide-and-conquer strategy. Plaintiffs settle their claims for less...