Litigation and Pretrial Negotiation under Incomplete Information
AbstractWe formulate a pretrial negotiation problem as an infinite-horizon bargaining model with one-sided uncertainty and alternating offers, with the informed party having an outside option. The plaintiff has private information and also has an outside option of "going to court." The defendant moves first. We show that there exists a unique sequential equilibrium. In equilibrium, when the defendant makes an offer, all the plaintiffs whose net recovery from litigation is greater (smaller) than the offer, reject it (accept it) and go to court next period. Hence, along the equilibrium path, the game lasts at most two periods. Copyright 1994 by Oxford University Press.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Oxford University Press in its journal Journal of Law, Economics and Organization.
Volume (Year): 10 (1994)
Issue (Month): 1 (April)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://jleo.oupjournals.org/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Andrew F. Daughety & Jennifer F. Reinganum, 2000.
"Found Money? Split-Award Statutes and Settlement of Punitive Damages Cases,"
Vanderbilt University Department of Economics Working Papers
0001, Vanderbilt University Department of Economics, revised Mar 2001.
- Andrew F. Daughety & Jennifer F. Reinganum, 2003. "Found Money? Split-Award Statutes and Settlement of Punitive Damages Cases," American Law and Economics Review, Oxford University Press, vol. 5(1), pages 134-164.
- Bertrand Chopard & Thomas Cortade & Eric Langlais, 2008.
"Trial and settlement negotiations between asymmetrically skilled parties,"
EconomiX Working Papers
2008-32, University of Paris West - Nanterre la Défense, EconomiX.
- Chopard, Bertrand & Cortade, Thomas & Langlais, Eric, 2010. "Trial and settlement negotiations between asymmetrically skilled parties," International Review of Law and Economics, Elsevier, vol. 30(1), pages 18-27, March.
- Chopard, Bertrand & Cortade, Thomas & Langlais, Eric, 2008. "Trial and settlement negotiations between asymmetrically skilled parties," MPRA Paper 8995, University Library of Munich, Germany.
- Schwab, Christian & Tang, Hin-Yue Benny, 2011.
"Die Steuerungswirkungen unterschiedlicher Prozesskostenregelungen: Ein Überblick zum Stand von Theorie und Empirie
[The economic effects of alternative fee shifting rules: A review of the theoreti," MPRA Paper 32746, University Library of Munich, Germany.
- Alfredo Esposto, 1998. "Takings, litigation, and just compensation," Atlantic Economic Journal, International Atlantic Economic Society, vol. 26(4), pages 397-412, December.
- Miceli, Thomas J., 1999. "Settlement delay as a sorting device," International Review of Law and Economics, Elsevier, vol. 19(2), pages 265-274, June.
- Kima, Jeong-Yoo & Ryu, Keunkwan, 2000. "Pretrial negotiation behind open doors versus closed doors:: Economic analysis of Rule 408," International Review of Law and Economics, Elsevier, vol. 20(2), pages 285-294, June.
- Ormosi, Peter L., 2012. "Tactical dilatory practice in litigation: Evidence from EC merger proceedings," International Review of Law and Economics, Elsevier, vol. 32(4), pages 370-377.
- Christopher C. Klein, 2007. "Anticompetitive Litigation and Antitrust Liability," Working Papers 200713, Middle Tennessee State University, Department of Economics and Finance.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.