, plaintiffs are more willing to accept lower settlement offers and therefore, the firm's expected litigation loss is lowered under …In an attempt to reduce the liability insurance costs of firms, several US states have implemented many different kinds … this statute. It is important to note, however, that the reduction in the firm's expected litigation loss will affect its …

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 …

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 …

Gambling for the Upper Hand - Settlement Negotiations in the Lab …We exploit a controlled non-framed laboratory experiment to study settlement negoti- ations 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 …

lawfulness are ascertained in a final court ruling at trial—is an important litigation instrument in many areas of the law … settlement decisions. We consider these implications when there is uncertainty about both the plaintiff's damages as well as the … settlement. A precursor to this analysis is the study of the strategic role of preliminary injunctions as a means to signal the …

study how the timing of settlement is shaped by the stages and features of the litigation process. Using competing risk …Although an overwhelming proportion of all legal disputes end in settlement, the determinants of the timing of … settlement remain empirically underexplored. We draw on a novel dataset on the duration of commercial disputes in Slovenia to …

We consider a model of a single defendant and N plaintiffs where the total cost of litigation is fixed on the part of …-it-or-leave-it settlement offers, we can show that they will actually be exploited by one of their fellow plaintiffs rather than by the … defendant. Moreover, if litigation is a public good as is the case in shareholder derivative suits, parties may fail to reach a …

We consider a model of a single defendant and N plaintiffs where the total cost of litigation is fixed on the part of …-it-or-leave-it settlement offers, we can show that they will actually be exploited by one of their fellow plaintiffs rather than by the … defendant. Moreover, if litigation is a public good as is the case in shareholder derivative suits, parties may fail to reach a …

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 …