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Litigation and the Evolution of Legal Remedies: A Dynamic Model

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  • Fon, Vincy
  • Parisi, Francesco

Abstract

In this paper we build upon existing literature on the evolution of the common law. We consider a model of legal evolution in which judges have varying ideologies and propensities to extend the domain of legal remedies and causes of action. Parties have symmetric stakes and are rational. Plaintiffs bring a case to court if the expected net return from the case is positive. The net expected value of the case depends on the objective merits of the case, the state of the law, and the ideological propensity of the judge. Plaintiffs have full control over whether to bring a case to court. In our model, the combined presence of differences in judges' ideology and plaintiff's case selection generate a monotonic upward trend in the evolution of legal rules and remedies. This may explain the stylized fact under which certain areas of the law have been granting increasing levels of remedial protection and recognition of plaintiffs' actions. Copyright 2003 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 116 (2003)
Issue (Month): 3-4 (September)
Pages: 419-33

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Handle: RePEc:kap:pubcho:v:116:y:2003:i:3-4:p:419-33

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Web page: http://www.springerlink.com/link.asp?id=100332

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Cited by:
  1. Dari-Mattiacci, Giuseppe & Deffains, Bruno & Lovat, Bruno, 2011. "The dynamics of the legal system," Journal of Economic Behavior & Organization, Elsevier, vol. 79(1), pages 95-107.
  2. Fon, Vincy & Parisi, Francesco, 2006. "Judicial precedents in civil law systems: A dynamic analysis," International Review of Law and Economics, Elsevier, vol. 26(4), pages 519-535, December.
  3. Miceli, Thomas J., 2010. "Legal change and the social value of lawsuits," International Review of Law and Economics, Elsevier, vol. 30(3), pages 203-208, September.
  4. Guiseppe Dari-Mattiacci & Bruno Deffains, 2006. "Uncertainty of Law and the Legal Process," Tinbergen Institute Discussion Papers 06-071/1, Tinbergen Institute.
  5. Barbara Luppi & Francesco Parisi, 2012. "Litigation and legal evolution: does procedure matter?," Public Choice, Springer, vol. 152(1), pages 181-201, July.
  6. Eckardt, Martina, 2004. "Evolutionary approaches to legal change," Thuenen-Series of Applied Economic Theory 47, University of Rostock, Institute of Economics.
  7. Matteo Rizzolli & Margherita Saraceno, 2013. "Better that ten guilty persons escape: punishment costs explain the standard of evidence," Public Choice, Springer, vol. 155(3), pages 395-411, June.
  8. Garrouste, Pierre, 2008. "The Handbook of New Institutional Economics, C. Ménard, M.M. Shirley (Eds.), Springer, Dordrecht, The Netherlands. 2005, 884Â +Â xi pp., $199.00, index, ISBN: 10 1-4020-2687-0," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 532-536, August.
  9. Paul Rubin, 2005. "Public choice and tort reform," Public Choice, Springer, vol. 124(1), pages 223-236, July.
  10. Vincy Fon & Francesco Parisi & Ben Depoorter, 2005. "Litigation, Judicial Path-Dependence, and Legal Change," European Journal of Law and Economics, Springer, vol. 20(1), pages 43-56, July.

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