Advanced Search
MyIDEAS: Login to save this paper or follow this series

Emotions in Litigation Contests

Contents:

Author Info

  • Florian Baumann
  • Tim Friehe

Abstract

This paper introduces the concept of emotions into the standard litigation contest. Positive (negative) emotions emerge when litigants win (lose) at trial and are dependent in particular on the level of defendant fault. Our findings establish that standard results of litigation contests change significantly when emotions are taken into account. We show that emotions may increase or decrease individual and total equilibrium contest effort, introduce an asymmetry into the contest, and reinforce or weaken a plaintiff’s incentives to bring a suit. In addition, we consider how emotions impact on justice.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2011/wp-cesifo-2011-02/cesifo1_wp3351.pdf
Download Restriction: no

Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3351.

as in new window
Length:
Date of creation: 2011
Date of revision:
Handle: RePEc:ces:ceswps:_3351

Contact details of provider:
Postal: Poschingerstrasse 5, 81679 Munich
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Email:
Web page: http://www.cesifo.de
More information through EDIRC

Related research

Keywords: emotions; litigation contest; trial; defendant fault;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Katz, Avery, 1988. "Judicial decisionmaking and litigation expenditure," International Review of Law and Economics, Elsevier, Elsevier, vol. 8(2), pages 127-143, December.
  2. Bosman, R.A.J & van Winden, Frans A.A.M., 2006. "Global Risk, Investment and Emotions," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5451, C.E.P.R. Discussion Papers.
  3. Stergios Skaperdas, 1996. "Contest success functions (*)," Economic Theory, Springer, Springer, vol. 7(2), pages 283-290.
  4. Babcock, Linda & Pogarsky, Greg, 1999. "Damage Caps and Settlement: A Behavioral Approach," The Journal of Legal Studies, University of Chicago Press, University of Chicago Press, vol. 28(2), pages 341-70, June.
  5. Matthias Kräkel, 2008. "Emotions and the optimality of uneven tournaments," Review of Managerial Science, Springer, Springer, vol. 2(1), pages 61-79, March.
  6. Dixit, Avinash K, 1987. "Strategic Behavior in Contests," American Economic Review, American Economic Association, American Economic Association, vol. 77(5), pages 891-98, December.
  7. Astrid Hopfensitz & Ernesto Reuben, 2005. "The Importance of Emotions for the Effectiveness of Social Punishment," Tinbergen Institute Discussion Papers 05-075/1, Tinbergen Institute, revised 28 Mar 2006.
  8. Parisi, Francesco, 2002. "Rent-seeking through litigation: adversarial and inquisitorial systems compared," International Review of Law and Economics, Elsevier, Elsevier, vol. 22(2), pages 193-216, August.
  9. Konrad, Kai A., 2009. "Strategy and Dynamics in Contests," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199549603, October.
  10. Warneryd, Karl, 2000. "In Defense of Lawyers: Moral Hazard as an Aid to Cooperation," Games and Economic Behavior, Elsevier, Elsevier, vol. 33(1), pages 145-158, October.
  11. Huang, Peter H. & Wu, Ho-Mou, 1992. "Emotional responses in litigation," International Review of Law and Economics, Elsevier, Elsevier, vol. 12(1), pages 31-44, March.
  12. Ernesto Reuben & Frans van Winden, . "Social Ties and Coordination on Negative Reciprocity: The Role of Affect," Discussion Papers 06-08, University of Copenhagen. Department of Economics.
  13. Andrew F. Daughety & Jennifer F. Reinganum, 2002. "Informational Externalities in Settlement Bargaining: Confidentiality and Correlated Culpability," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 587-604, Winter.
  14. Babcock, Linda, et al, 1995. "Biased Judgments of Fairness in Bargaining," American Economic Review, American Economic Association, American Economic Association, vol. 85(5), pages 1337-43, December.
  15. Farmer, Amy & Pecorino, Paul, 1999. " Legal Expenditure as a Rent-Seeking Game," Public Choice, Springer, Springer, vol. 100(3-4), pages 271-88, September.
  16. Hirshleifer, Jack & Osborne, Evan, 2001. " Truth, Effort, and the Legal Battle," Public Choice, Springer, Springer, vol. 108(1-2), pages 169-95, July.
  17. Jon Elster, 1998. "Emotions and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 47-74, March.
  18. Stanley, Linda R & Coursey, Don L, 1990. "Empirical Evidence on the Selection Hypothesis and the Decision to Litigate or Settle," The Journal of Legal Studies, University of Chicago Press, University of Chicago Press, vol. 19(1), pages 145-72, January.
  19. Kräkel, Matthias, 2008. "Emotions in tournaments," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 67(1), pages 204-214, July.
  20. Christian Ewerhart, 2010. "Rent-seeking contests with independent private values," IEW - Working Papers 490, Institute for Empirical Research in Economics - University of Zurich.
  21. Tim Friehe, 2011. "On being asset-constrained in litigation contests," Public Choice, Springer, Springer, vol. 147(3), pages 277-284, June.
  22. Schoonbeek, L. & Kooreman, P., 1997. "The specification of the probability functions in Tullock's rentseeking contest," Open Access publications from Tilburg University urn:nbn:nl:ui:12-377560, Tilburg University.
  23. Ronald Bosman & Frans van Winden, 2002. "Emotional Hazard in a Power-to-take Experiment," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(476), pages 147-169, January.
  24. Grund, Christian & Sliwka, Dirk, 2002. "Envy and Compassion in Tournaments," IZA Discussion Papers 647, Institute for the Study of Labor (IZA).
  25. Richard Allard, 1988. "Rent-seeking with non-identical players," Public Choice, Springer, Springer, vol. 57(1), pages 3-14, April.
  26. Farmer, Amy & Tiefenthaler, Jill, 2001. "Conflict in divorce disputes: the determinants of pretrial settlement," International Review of Law and Economics, Elsevier, Elsevier, vol. 21(2), pages 157-180, June.
  27. Baik, Kyung Hwan & Kim, In-Gyu, 2007. "Contingent fees versus legal expenses insurance," International Review of Law and Economics, Elsevier, Elsevier, vol. 27(3), pages 351-361, September.
  28. Kragl, Jenny & Schmid, Julia, 2009. "The impact of envy on relational employment contracts," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 72(2), pages 766-779, November.
  29. repec:dgr:uvatin:2005075 is not listed on IDEAS
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_3351. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.