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settlement, a theory flowing from the Coase Theorem. The cost-benefit analysis weighs settlement against the expected value of … economics to construct a pricing theory of legal disputes. In addition to probability and transaction cost, dispute risk must …
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Firms hiring fresh graduates face uncertainty on the future productivity of workers. Theory suggests that starting …
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Societies provide institutions that are costly to use, but able to enforce long-run relationships. We study the optimal decision problem of using self-governance for risk sharing or governance through enforcement provided by these institutions. Third-party enforcement is modelled as a costly...
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Final-offer arbitration (FOA) is a widely used binding dispute resolution mechanism, where an impartial arbitrator is …
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