Legal change and the social value of lawsuits
AbstractThis paper integrates the literatures on the social value of lawsuits, the evolution of the law, and judicial preferences to evaluate the hypothesis that the law evolves toward efficiency. The setting is a simple accident model with costly litigation where the efficient law minimizes the sum of accident plus litigation costs. The analysis shows that the law will not generally evolve completely toward any one rule, but will reach a steady state equilibrium in which the distribution of rules depends both on the selective litigation effect and the nature of judicial bias. The analysis also links legal change with the social value of lawsuits to allow an explicit evaluation of the lawmaking function of trials.
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Bibliographic InfoArticle provided by Elsevier in its journal International Review of Law and Economics.
Volume (Year): 30 (2010)
Issue (Month): 3 (September)
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Web page: http://www.elsevier.com/locate/irle
Efficiency of the law Judicial decision making Legal change Precedent Selection effect Value of lawsuits;
Other versions of this item:
- K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
- K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
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