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Delay and Settlement in Litigation

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Author Info

  • Fenn, Paul
  • Rickman, Neil

Abstract

Delay in litigation is a policy concern in many jurisdictions. Little evidence is available on the causes of such delay, however. The authors present a version of K. Spier's (1992) bargaining model of litigation and derive directly a functional form for the conditional probability of case settlement. They then estimate this and test predictions about the effects of legal costs and uncertainty over damages and liability on the conditional probability of settlement using data from negligence claims against several NHS Trusts. The authors' results provide a direct test of the model and shed light on the causes of settlement delay in England.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 109 (1999)
Issue (Month): 457 (July)
Pages: 476-91

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Handle: RePEc:ecj:econjl:v:109:y:1999:i:457:p:476-91

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Citations

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Cited by:
  1. Ormosi, Peter L., 2012. "Tactical dilatory practice in litigation: Evidence from EC merger proceedings," International Review of Law and Economics, Elsevier, vol. 32(4), pages 370-377.
  2. J.J. Prescott & Kathryn E. Spier & Albert Yoon, 2014. "Trial and Settlement: A Study of High-Low Agreements," NBER Working Papers 19873, National Bureau of Economic Research, Inc.
  3. Lode Vereeck & Manuela Mühl, 2000. "An Economic Theory of Court Delay," European Journal of Law and Economics, Springer, vol. 10(3), pages 243-268, November.
  4. Davis S. Kaplan & Joyce Sadka & Jorge Luis Silva-Mendez, 2006. "Litigation and Settlement: New Evidence from Labor Courts in Mexico," Working Papers 0606, Centro de Investigacion Economica, ITAM.
  5. Neil Rickman & Paul Fenn & Alastair Gray, 1999. "The reform of Legal Aid in England and Wales," Fiscal Studies, Institute for Fiscal Studies, vol. 20(3), pages 261-286, September.
  6. Kaplan, David S. & Sadka, Joyce, 2008. "Enforceability of labor law : evidence from a labor court in Mexico," Policy Research Working Paper Series 4483, The World Bank.
  7. Di Vita, Giuseppe, 2010. "Production of laws and delays in court decisions," International Review of Law and Economics, Elsevier, vol. 30(3), pages 276-281, September.
  8. Yasutora Watanabe, 2005. "Learning and Bargaining in Dispute Resolution: Theory and Evidence from Medical Malpractice Litigation," 2005 Meeting Papers 440, Society for Economic Dynamics.
  9. Heyes, Anthony & Rickman, Neil & Tzavara, Dionisia, 2004. "Legal expenses insurance, risk aversion and litigation," International Review of Law and Economics, Elsevier, vol. 24(1), pages 107-119, March.
  10. Graevenitz, Georg von, 2007. "Which Reputations Does a Brand Owner Need? Evidence from Trade Mark Opposition," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 215, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  11. van Velthoven, Ben & van Wijck, Peter, 2001. "Legal cost insurance and social welfare," Economics Letters, Elsevier, vol. 72(3), pages 387-396, September.

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