We investigate the firms' investment decisions in the presence of litigation over infringement and cross licensing as a way to settle. The model endogenously determines not only the timing of investments but also their capacities, the degree of overlap between the initial and the subsequent...

In our previous work (Guerra-Pujol, 2011), we presented a general Bayesian model of the litigation process and concluded that "regardless of the operative rules of procedure and substantive legal doctrine, litigation outcomes [are] a highly reliable indicator of a defendant's [actual] guilt." By...

The United States judicial system is in the midst of great and fundamental change with regard to the funding of litigation. Historically, parties financed litigation out of their own literal or figurative pockets or, perhaps with the assistance of some sort of contingent fee representation....

This chapter examines the basic model of the law and economics of litigation. Because the Rules of Civil Procedure and the Economics of the Litigation/Settlement decision are covered in separate chapters of this volume, this chapter will focus on private civil litigation, in particular the...

This article explores a jurisprudential point: legal indeterminacy in the context of Mexican-American civil rights litigation. The article argues that because of legal uncertainty or indeterminacy the resolution of key issues was not inevitable. Judges often had discretion to reach their...

The goal of this paper is to study how litigation and settlement behavior is affected by subjects motivated by spiteful preferences -- a potentially common driver for litigation behavior. We focus on litigation and settlement behavior both under the American and the English fee-shifting rule. To...