Qiao, Yue - In: Asian Journal of Law and Economics 1 (2010) 1
In this paper we consider the effects of legal-expenses insurance on settlement. Using a one-shot asymmetric …-the-event insured, after-the-event insured or self-funded. We investigate the effects of insurance on settlement probabilities …, settlement amounts, care levels and the plaintiff's welfare. We also show how the model can be amended to include a "recoverable …