twofold: First, it establishes a workhorse model of settlement and litigation in the shadow of appeals which may be used in … future research to analyze specific issues of litigation and legal reform. Second, the importance of including the … possibility of appeals in the litigation model is highlighted by an example in which some results contradict the immediate …

Settlements are often considered to be welfare-enhancing because they save time and litigation costs. In the presence … which will not occur if a dispute is settled out of court. Focusing on private litigation, we examine the impact of court … offset the positive externality of litigation. …

Settlements are often considered to be welfare-enhancing because they save time and litigation costs. In the presence … which will not occur if a dispute is settled out of court. Focusing on private litigation, we examine the impact of court … offset the positive externality of litigation. …

This paper analyzes the signaling nature of litigation selection under asymmetric information. For the robustness of … the analysis, we separate the litigation selection process, where the signaling from the informed party plays the key role …, from the actual settlement where a more general bargaining method than the usual 'take-it-or-leave-it' is adopted. With …

This paper studies the signaling role of the litigation/settlement selection under asymmetric information. As an … attempt to improve existing asymmetric information theory, we separate litigation/settlement selection process and the actual … settlement bargaining process, and adopt an infinitely repeated settlement bargaining with alternating offers, instead of the …

of the costs of pursuing the punitive claim), which promotes unnecessary litigation, the escalation of liability … the state. Our paper presents a strategic model of litigation under a negligence rule. We extend Spier's (1997 …) theoretical framework on litigation by explicitly modeling frivolous lawsuits. In this way, we capture the main welfare effects of …