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Information Provision and Monitoring of the Decision-Maker in the Presence of an Appeal Process

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Author Info
Elisabetta Iossa
Giuliana Palumbo

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Abstract

We consider a setting where a decision-maker has to resolve a dispute between two parties. On demand of the losing party, the decision may be subject to review by an appellate body. The decision-maker has discretionary power and may be opportunistic. Depending on the institution design, information on the dispute is provided either by the parties themselves or by an independent investigator. We show that information provision by the parties generates more efficient monitoring through appeals and less opportunism by the decision-maker than information provision by the investigator. We discuss our results in light of the adversarial-versus-inquisitorial controversy.

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File URL: http://www.ingentaconnect.com/content/mohr/jite/2007/00000163/00000004/art00006
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Publisher Info
Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 163 (2007)
Issue (Month): 4 (December)
Pages: 657-682
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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200712)163:4_657:ipamot_2.0.tx_2-s

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Related research
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Find related papers by JEL classification:
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

Cited by:
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  1. Elisabetta Iossa & Giuliana Palumbo, 2006. "Reputational Concerns and Bias in Arbitration," Economics and Finance Discussion Papers 06-09, Economics and Finance Section, School of Social Sciences, Brunel University. [Downloadable!]
  2. Iossa, Elisabetta & Jullien, Bruno, 2007. "The Market for Lawyers: The Value of Information on the Quality of Legal Services," IDEI Working Papers 485, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
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This page was last updated on 2009-12-10.


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