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Settlement probability asymmetries in the Swedish Labour Court

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  • Morgan Westéus

Abstract

This paper focuses on settlement probabilities for different types of representation within the Swedish Labour Court. Empirical estimates on a set of cases concerned with unjust dismissals show that private representatives are generally less likely to reach a settlement than their union counterparts. The settlement probabilities converge following court-mandated information disclosure, which suggests that information asymmetry is an important factor in explaining differences in settlement behaviour and that private negotiations are not sufficient in general. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Morgan Westéus, 2014. "Settlement probability asymmetries in the Swedish Labour Court," European Journal of Law and Economics, Springer, vol. 38(3), pages 485-512, December.
    • Handle: RePEc:kap:ejlwec:v:38:y:2014:i:3:p:485-512
    DOI: 10.1007/s10657-013-9397-9
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    Cited by:

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    2. Peter Grajzl & Katarina Zajc, 2017. "Litigation and the timing of settlement: evidence from commercial disputes," European Journal of Law and Economics, Springer, vol. 44(2), pages 287-319, October.

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    More about this item

    Keywords

    Unjust dismissals; Negotiations; Settlements; Trade unions; D81; D82; J52; K31; K41;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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