Shifting Plaintiffs' Fees versus Increasing Damage Awards
AbstractShifting victorious plaintiffs' fees to defendants and increasing damage awards are alternative ways to achieve similar results: increasing plaintiffs' incentives to sue and raising defendants' expected payments. This article shows that relying on higher damage awards is more efficient than shifting plaintiffs' fees. The reason is that fee shifting is more valuable for plaintiffs with higher litigation costs. Thus, it is possible to substitute higher damage awards for fee shifting in a manner that leaves deterrence unaffected while eliminating the suits of plaintiffs with the highest litigation costs.
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Bibliographic InfoArticle provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 24 (1993)
Issue (Month): 4 (Winter)
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Web page: http://www.rje.org
Other versions of this item:
- Louis Kaplow, 1994. "Shifting Plaintiffs' Fees versus Increasing Damage Awards," NBER Working Papers 4263, National Bureau of Economic Research, Inc.
- K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
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