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Economic Theories of Settlement Bargaining

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Author Info
Andrew F. Daughety () (Department of Economics and Law School, Vanderbilt University)
Jennifer F. Reinganum () (Department of Economics and Law School, Vanderbilt University)

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Abstract

We briefly review two basic models of settlement bargaining based on concepts from information economics and game theory. We then discuss how these models have been generalized to address issues that arise when there are more than two litigants with related cases. Linkages between cases can arise due to exogenous factors such as correlated culpability or damages, or they can be generated by discretionary choices on the part of the litigants themselves or by legal doctrine and rules of procedure.

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File URL: http://www.vanderbilt.edu/Econ/wparchive/workpaper/vu05-w08.pdf
File Format: application/pdf
File Function: First version, 2005
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Publisher Info
Paper provided by Department of Economics, Vanderbilt University in its series Working Papers with number 0508.

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Date of creation: Apr 2005
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Handle: RePEc:van:wpaper:0508

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Related research
Keywords: Multiple litigants; externalities; asymmetric information;

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Find related papers by JEL classification:
K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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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.:
  1. Feessa, Eberhard & Muehlheusser, Gerd, 2000. "Settling multidefendant lawsuits under incomplete information," International Review of Law and Economics, Elsevier, vol. 20(2), pages 295-313, June. [Downloadable!] (restricted)
  2. Spier, Kathryn E, 2003. " The Use of "Most-Favored-Nation" Clauses in Settlement of Litigation," RAND Journal of Economics, The RAND Corporation, vol. 34(1), pages 78-95, Spring.
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(explanations, 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.)

  1. repec:bep:eapcon:v:7:y:2007:i:1:p:1764-1764 is not listed on IDEAS
  2. Rohan Pitchford & Mark L. J. Wright, 2008. "Holdouts In Sovereign Debt Restructuring: A Theory Of Negotiation In A Weak Contractual Environment," CAMA Working Papers 2008-37, Australian National University, Centre for Applied Macroeconomic Analysis. [Downloadable!]
  3. Andrew F. Daughety & Jennifer F. Reinganum, 2007. "Mass Torts and the Incentives for Suit, Settlement, and Trial," Working Papers 0713, Department of Economics, Vanderbilt University. [Downloadable!]
  4. Kamphorst, Jurjen J.A. & Van Velthoven, Ben C.J., 2006. "The introduction of an appeals court in Dutch tax litigation," MPRA Paper 2008, University Library of Munich, Germany, revised 27 Apr 2006. [Downloadable!]
    Other versions:
  5. Giuseppe Dari-Mattiacci & Bruno Deffains, 2006. "Uncertainty of Law and the Legal Process," Working Papers of BETA 2006-11, Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg. [Downloadable!]
    Other versions:
  6. Che, Yeon-Koo & Spier, Kathryn, 2007. "Exploiting Plaintiffs Through Settlement: Divide and Conquer," MPRA Paper 6104, University Library of Munich, Germany. [Downloadable!]
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  7. Philippe Choné & Laurent Linnemer, 2008. "Optimal Litigation Strategies with Signaling and Screening," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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