Allocation of Legal Costs and Patent Litigation: A Cooperative Game Approach

Reiko Aoki and Jin-Li Hu ()

Industrial Organization from University Library of Munich, Germany

Abstract: We compare the bargaining power of the patentee under American and English rules of legal costs allocation. Using the Nash Bargaining Game framework, we show that litigation can be a Pareto efficient outcome. The cooperative game framework allows us to examine how the institutional and market factors influence bargaining powers of plaintiff and defendant under different rules of legal cost allocation, free from assumptions on information and sequence of moves. The American rule renders the patentee more bargaining power when the legal system favors the defendant. An increase in damage reward raises bargaining power of the plaintiff and the settlement rate.

JEL-codes: L (search for similar items in EconPapers)
Pages: 35 pages
Date: 1996-12-13
Note: Type of Document - postscript and pdf files; prepared on IBM PC ; to print on PostScript or any printer supported by Acrobat; pages: 35 ; figures: included
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/io/papers/9612/9612001.pdf (application/pdf)
https://econwpa.ub.uni-muenchen.de/econ-wp/io/papers/9612/9612001.ps.gz (application/postscript)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpio:9612001

Access Statistics for this paper

More papers in Industrial Organization from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).