We exploit a controlled frameless laboratory experiment to study settlement negotiations and the plaintiff's decision … to raise a lawsuit in case of an impasse. We find that greater variance in court outcomes increases the litigation rate … and lowers the settlement rate. This latter finding goes against the received wisdom and earlier experimental evidence …

We examine settings - such as litigation, labor relations, or arming and war - in which players first make non …

's punitive damage award, on litigation outcomes. Our findings indicate that dispute rates are significantly lower when bargaining … is performed under the split-award institution. Defendants' litigation losses and plaintiffs' net compensation are …