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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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  • Fon, Vincy & Parisi, Francesco, 2003. "Litigation and the Evolution of Legal Remedies: A Dynamic Model," Public Choice, Springer, vol. 116(3-4), pages 419-433, September.
    • Handle: RePEc:kap:pubcho:v:116:y:2003:i:3-4:p:419-33
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    Citations

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    Cited by:

    1. Giuseppe Dari-Mattiacci & Bruno Deffains, 2007. "Uncertainty of Law and the Legal Process," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(4), pages 627-656, December.
    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. Schaefer Hans-Bernd, 2020. "Laudatio: Francesco Parisi," Review of Law & Economics, De Gruyter, vol. 16(1), pages 1-9, March.
    4. von Wangenheim Georg, 2011. "Evolutionary Theories in Law and Economics and Their Use for Comparative Legal Theory," Review of Law & Economics, De Gruyter, vol. 7(3), pages 737-765, December.
    5. Giorgio Rampa & Margherita Saraceno, 2014. "Beliefs and Precedent: The Dynamics of Access to Justice," DEM Working Papers Series 084, University of Pavia, Department of Economics and Management.
    6. Barbara Luppi & Francesco Parisi, 2012. "Litigation and legal evolution: does procedure matter?," Public Choice, Springer, vol. 152(1), pages 181-201, July.
    7. Paul Rubin, 2005. "Public choice and tort reform," Public Choice, Springer, vol. 124(1), pages 223-236, July.
    8. 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.
    9. 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.
    10. Dari-Mattiacci, Giuseppe & Deffains, Bruno & Lovat, Bruno, 2011. "The dynamics of the legal system," Journal of Economic Behavior & Organization, Elsevier, vol. 79(1-2), pages 95-107, June.
    11. Francesco Parisi & Barbara Luppi & Alice Guerra, 2017. "Gordon Tullock and the Virginia School of Law and Economics," Constitutional Political Economy, Springer, vol. 28(1), pages 48-61, March.
    12. 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.
    13. Eckardt, Martina, 2004. "Evolutionary approaches to legal change," Thuenen-Series of Applied Economic Theory 47, University of Rostock, Institute of Economics.
    14. 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.
    15. Parisi Francesco, 2020. "Law and Economics as We Grow Younger," Review of Law & Economics, De Gruyter, vol. 16(1), pages 1-20, March.
    16. repec:elg:eechap:15325_17 is not listed on IDEAS
    17. Álvaro Bustos, 2020. "How Does Court Stability Affect Legal Stability?," Documentos de Trabajo 535, Instituto de Economia. Pontificia Universidad Católica de Chile..
    18. Todd J. Zywicki & Edward P. Stringham, 2017. "Austrian law and economics and efficiency in the common law," Chapters, in: Todd J. Zywicki & Peter J. Boettke (ed.), Research Handbook on Austrian Law and Economics, chapter 9, pages 192-208, Edward Elgar Publishing.
    19. Christmann Robin, 2015. "Tipping the Scales – Settlement, Appeal and the Relevance of Judicial Ambition," Review of Law & Economics, De Gruyter, vol. 11(2), pages 171-207, July.
    20. Robin Christmann, 2014. "No Judge, No Job! Court errors and the contingent labor contract," European Journal of Law and Economics, Springer, vol. 38(3), pages 409-429, December.

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