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Investing in legal advice

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  • Juranek, Steffen

Abstract

I study the effect of strategic product market considerations on the resource spending decision of plaintiffs in patent lawsuits. I use a unique sample of US patent litigation cases and focus on an important decision of the plaintiffs; their decision to hire external attorneys. I find that plaintiffs hire significantly more attorneys if they are in a horizontal relationship with the defendant rather than in a vertical relationship, i.e., if the litigants compete on the product market. This strategic product market effect is more pronounced the more concentrated the product market is.

Suggested Citation

  • Juranek, Steffen, 2018. "Investing in legal advice," Information Economics and Policy, Elsevier, vol. 44(C), pages 28-46.
    • Handle: RePEc:eee:iepoli:v:44:y:2018:i:c:p:28-46
    DOI: 10.1016/j.infoecopol.2018.06.002
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    Cited by:

    1. Juranek, Steffen & Otneim, Håkon, 2021. "Using machine learning to predict patent lawsuits," Discussion Papers 2021/6, Norwegian School of Economics, Department of Business and Management Science.

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    More about this item

    Keywords

    Litigation; Patents; Strategic value; Competition;
    All these keywords.

    JEL classification:

    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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