A note on the timing of investments in litigation contests

Florian Baumann (fbaumann@uni-bonn.de) and Tim Friehe

European Journal of Law and Economics, 2013, vol. 35, issue 3, 313-326

Abstract: Allowing the plaintiff and defendant to choose the order in which they invest effort into trial, we show that the timing of litigation efforts is critically dependent on the level of defendant fault. For a high (low) level of defendant fault, the plaintiff invests after (before) the defendant’s investment choice. The equilibrium order of litigation efforts in turn is decisive for (a) the level of total litigation effort, (b) justice achieved by the litigation contest, and (c) plaintiffs’ incentives to bring suit. As a result, the endogenous timing bears vital implications for policy makers. Copyright Springer Science+Business Media, LLC 2013

Keywords: Litigation contest; Endogenous timing; Litigation effort; Justice; K 41; D 74 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s10657-010-9181-z

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