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 …

in discovery by disallowing a settlement in the event of unsuccessful discovery, thereby reducing the pair's joint …

feature of optimal insurance contracts because they relieve litigation-related risks and result in lower premiums — financed … by the litigation income of insurers. This income includes earnings from suits that insureds would not otherwise have …