Truth, Effort, and the Legal Battle

In lawsuits, relative success depends upon two main factors:the true degree of fault, and the efforts invested on eachside. A proposed Litigation Success Function displays thisdependence while satisfying other essential properties. Undertwo different protocols, Nash-Cournot and Stackelberg,solutions are obtained for the litigation efforts,proportionate success, and values of the lawsuit on each side.Outcomes are evaluated in terms of two normative criteria; (i)achieving `justice' (interpreted as equality between Defendantfault and relative Plaintiff success) and (ii) minimizingaggregate litigation cost. Achievement of these aims isdetermined by the decisiveness of litigation effort relativeto true fault.

[1]  A. Tabarrok,et al.  Court Politics: The Political Economy of Tort Awards* , 1999, The Journal of Law and Economics.

[2]  J. P. Gould,et al.  The Economics of Legal Conflicts , 1973, The Journal of Legal Studies.

[3]  L. Bebchuk A New Theory concerning the Credibility and Success of Threats to Sue , 1996, The Journal of Legal Studies.

[4]  Bruce H. Kobayashi,et al.  In defense of criminal defense expenditures and plea bargaining , 1996 .

[5]  T. Schelling The Strategy of Conflict , 1963 .

[6]  Amy Farmer,et al.  Legal expenditure as a rent-seeking game , 1999 .

[7]  John C. Hause Indemnity, Settlement, and Litigation, or I'll Be Suing You , 1989, The Journal of Legal Studies.

[8]  B. Owen,et al.  An Economic Analysis of Alternative Fee Shifing Systems , 1984 .

[9]  R. Block,et al.  The Impact of Attorneys and Arbitrators on Arbitration Awards , 1987 .

[10]  O. Ashenfelter,et al.  Lawyers as Agents of the Devil in a Prisoner's Dilemma Game , 1993, SSRN Electronic Journal.

[11]  R. L. Faith,et al.  A Pure Theory of Strategic Behavior and Social Institutions , 1980 .

[12]  Benjamin Klein,et al.  The Selection of Disputes for Litigation , 1984, The Journal of Legal Studies.

[13]  A. Katz,et al.  Judicial decisionmaking and litigation expenditure , 1988 .

[14]  William M. Landes,et al.  An Economic Analysis of the Courts , 1971, The Journal of Law and Economics.

[15]  S. Skaperdas Contest success functions , 1996 .

[16]  H. Farber,et al.  Medical malpractice: an empirical examination of the litigation process. , 1991, The Rand journal of economics.

[17]  J. Hirshleifer Conflict and rent-seeking success functions: Ratio vs. difference models of relative success , 1989 .

[18]  A. Rubinstein Perfect Equilibrium in a Bargaining Model , 1982 .

[19]  Avinash Dixit,et al.  Strategic Behavior in Contests , 1987 .

[20]  S. Shavell,et al.  A MODEL IN WHICH SUITS ARE BROUGHT FOR THEIR NUISANCE VALUE , 1985 .

[21]  Ken Binmore,et al.  Fun and games , 1991 .

[22]  D. Wittman Is the Selection of Cases for Trial Biased? , 1985, The Journal of Legal Studies.

[23]  Stephen P. Marks,et al.  Bargaining in the Shadow of the Law: A Testable Model of Strategic Behavior , 1982, The Journal of Legal Studies.

[24]  Insurance Practice Section,et al.  Tort Law and the Public Interest: Competition, Innovation, and Consumer Welfare , 1991 .