We consider a model of a single defendant and N plaintiffs where the total cost of litigation is fixed on the part of …-it-or-leave-it settlement offers, we can show that they will actually be exploited by one of their fellow plaintiffs rather than by the … defendant. Moreover, if litigation is a public good as is the case in shareholder derivative suits, parties may fail to reach a …

exist any verifiable performance signal. It is shown that ex-post litigation can restore incentives of the agent. Moreover …, when the litigation can be settled by the parties the pure threat of using the legal system may suffice to make the … situations where the agent is protected by limited liability, where the parties have different technologies in the litigation …

Legal institutions play an important role in affecting delay in settlement. But little research has investigated the … institutional causes of delay. The empirical literature is ambiguous regarding the impact of trial-court delay on settlement delay …. I analyze the timing of bargaining and the causes of delay using a cross-section of insurance claims in Texas over a 20 …

Litigation seems to be a Pareto-ineffcient outcome of pretrial bargaining; however, this paper shows that litigation … client concerning the characteristics of the lawsuit, the client can use litigation as a way of extracting information. I … show that, counterintuitively, litigation will occur only when the plaintiff is pessimistic about her prospects at trial …