Kirstein, Roland - Forschungsstelle zur ökonomischen Analyse des Rechts, … - 1999
The paper shows that Legal Cost Insurance (LCI) is a device to enhance potential litigants? bargaining position rather … than to re-allocate risk. Being insured decreases the cost an insured party has to bear if settlement negotiations fail and … value suits, LCI can make the threat to sue credible and motivate potential defendants to make positive settlement offers …