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. …

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 …

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 …

exist any verifiable performance signal. It is shown that ex-post litigation can restore incentives of the agent. Moreover …, when the litigation can be settled by the parties the pure threat of using the legal system may suffice to make the … situations where the agent is protected by limited liability, where the parties have different technologies in the litigation …

A settlement is an agreement between parties to a dispute. In everyday parlance and in academic scholarship, settlement … winner and announces a score. The “trial versus settlement” trope, however, represents a false choice; viewing settlement … and often does work. In this article, we describe and defend a much richer concept of settlement, amounting in effect to a …

This paper studies how litigation and settlement behavior is affected by agents motivated by spiteful preferences under … settlement requests are higher for more spiteful participants. The relative increase in litigation expenditures due to spite is … the American and the English fee-shifting rule. We conduct an experiment and find that litigation expenditures and …

I examine the determinants of conflict and settlement by embedding probabilistic contests in a bargaining framework …. Different costly enforcement efforts (e.g., arming, litigation expenditures) induce different disagreement points and Pareto … frontiers. After examining the incentives for settlement, I demonstrate how different division rules and bargaining norms have …

' beliefs about fairness and lower out-of-court settlement amounts. …

lawfulness is 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 …