This paper presents a strategic model of incentives for care and litigation under asymmetric information and self …

This paper presents a strategic model of incentives for care and litigation under asymmetric information and self …

of the costs of pursuing the punitive claim), which promotes unnecessary litigation, the escalation of liability … the state. Our paper presents a strategic model of litigation under a negligence rule. We extend Spier's (1997 …) theoretical framework on litigation by explicitly modeling frivolous lawsuits. In this way, we capture the main welfare effects of …

This paper analyzes the signaling nature of litigation selection under asymmetric information. For the robustness of … the analysis, we separate the litigation selection process, where the signaling from the informed party plays the key role …, from the actual settlement where a more general bargaining method than the usual 'take-it-or-leave-it' is adopted. With …

This paper studies the signaling role of the litigation/settlement selection under asymmetric information. As an … attempt to improve existing asymmetric information theory, we separate litigation/settlement selection process and the actual … settlement bargaining process, and adopt an infinitely repeated settlement bargaining with alternating offers, instead of the …

promotes unnecessary litigation (Dodson, 2000), the escalation of liability insurance premiums and over-deterrence. In an … strategic model of liability and litigation that incorporates agency problems between the plaintiff and its attorney and court … deterrence and litigation outcomes and find a predictability threshold beyond which the deterrence effect of punitive awards …

that reforms that reduce the firm's expected litigation loss also affect the firm's expenditures on accident prevention … on liability and litigation and extends it in a number of ways. First, we incorporate the split-award statute into the … framework. Second, we establish sufficient conditions for a unique litigation stage equilibrium that survives the universal …

, plaintiffs are more willing to accept lower settlement offers and therefore, the firm's expected litigation loss is lowered under … this statute. It is important to note, however, that the reduction in the firm's expected litigation loss will affect its … a strategic model of litigation under asymmetric information to investigate the effect of the split-award reform on the …

Settlements are often considered to be welfare-enhancing because they save time and litigation costs. In the presence … which will not occur if a dispute is settled out of court. Focusing on private litigation, we examine the impact of court … offset the positive externality of litigation. …

twofold: First, it establishes a workhorse model of settlement and litigation in the shadow of appeals which may be used in … future research to analyze specific issues of litigation and legal reform. Second, the importance of including the … possibility of appeals in the litigation model is highlighted by an example in which some results contradict the immediate …