This paper considers the question whether plaintiffs, whose claims pose an important common issue, and are thought to be unlikely to prevail on this issue, should be permitted to maintain a class action in which this issue will be resolved or be required to litigate their claims in individual...

We introduce discovery into a model of settlement and negative expected value (NEV) suits under asymmetric information. The option to conduct discovery has several important effects. First, because discovery is cheaper than litigation, it reduces the defendant's incentive to settle under...

We consider the effect of competitor suits in a model in which an incumbent can take an action that deters the entry of a rival. The option to sue the incumbent can provide a subsidy for entry which can maintain competition even when the incumbent takes this action. Liability for the entrant's...

We consider the effect of competitor suits in a model in which an incumbent can take an action that deters the entry of a rival. The option to sue the incumbent can provide a subsidy for entry which can maintain competition even when the incumbent takes this action. Liability for the entrant's...

We revisit Lucian Bebchuk's 1996 claim that plaintiffs can use the sequential nature of litigation to extract a positive settlement from a negative-expected-value suit. We make three claims. First, this result is heavily dependent on the specific bargaining game he uses. Second, in an...

This article examines the premise that television broadcasters are able to exercise substantial market power deriving from governmental restrictions on entry. Using a new sample of actual transactions prices, we estimate a hedonic equation identifying product quality components of advertising...