This paper presents a strategic model of incentives for care and litigation under asymmetric information and self …

This paper presents a strategic model of incentives for care and litigation under asymmetric information and self …

We model the settlement of a legal dispute where the trial outcome depends on the behavior of a strategically motivated … higher settlement rate. However, the terms of the settlement heavily favor the informed plaintiff, and consequently induce …

The purpose of this chapter is to survey the academic literature on the economics of litigation and to synthesize its … main themes. The chapter begins by introducing the basic economic framework for studying litigation and out …-of-court settlement. One set of issues addressed is positive (or descriptive) in nature. Under what conditions will someone decide to file …

equilibrium settlements and the incentives to go to trial. We find that split-award statutes simultaneously lower settlement …

of the costs of pursuing the punitive claim), which promotes unnecessary litigation, the escalation of liability … insurance premiums and over-deterrence. In an attempt to overcome these negative effects, several US states have implemented … the state. Our paper presents a strategic model of litigation under a negligence rule. We extend Spier's (1997 …

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 …

normalized to one. The defendant knows whether she is liable or not, but the plaintiff does not. We ask what are the settlement … procedure and fee-shifting rule (which, together, we call a mechanism) that minimize the rate of litigation subject to … maintaining deterrence. Two main results are presented. The ?rst is a characterization of an upper bound on the rate of settlement …

promotes unnecessary litigation (Dodson, 2000), the escalation of liability insurance premiums and over-deterrence. In an … strategic model of liability and litigation that incorporates agency problems between the plaintiff and its attorney and court … deterrence and litigation outcomes and find a predictability threshold beyond which the deterrence effect of punitive awards …