Contracting on litigation.
Two risk‐averse litigants with different subjective beliefs negotiate in the shadow of a pending trial. Through contingent contracts, the litigants can mitigate risk and/or speculate on the trial outcome. Contingent contracting decreases the settlement rate and increases the volume and costs of liti...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 50; no. 2; pp. 391 - 418 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Summer2019
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=136090133&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 136090133 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Summer2019 vid: 50 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 136090133 10.1111/1756-2171.12274 ppf: 391 ppct: 27 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 331KB tig: atl: Contracting on litigation. aug: au: Spier, Kathryn E. Prescott, J.J. affil: Harvard University and NBER University of Michigan su: Legal settlement Actions & defenses (Law) Legal costs Third parties (Law) Trial preparation sug: subj: Legal settlement Actions & defenses (Law) Legal costs Third parties (Law) Trial preparation ab: Two risk‐averse litigants with different subjective beliefs negotiate in the shadow of a pending trial. Through contingent contracts, the litigants can mitigate risk and/or speculate on the trial outcome. Contingent contracting decreases the settlement rate and increases the volume and costs of litigation. These contingent contracts mimic the services provided by third‐party investors, including litigation funders and insurance companies. The litigants (weakly) prefer to contract with risk‐neutral third parties when the capital market is transaction‐cost free. However, contracting with third parties further decreases the settlement rate, increases the costs of litigation, and may increase the aggregate cost of risk bearing. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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