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Settling with Multiple Litigants

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  • Nakkas Alper

    (Vanderbilt University)

Abstract

This paper considers a class of complete information pretrial settlement bargaining games in which externalities can naturally arise due to the existence of multiple litigants. As opposed to earlier literature, it is shown that parties can always settle even though there are bargaining externalities.

Suggested Citation

  • Nakkas Alper, 2010. "Settling with Multiple Litigants," Review of Law & Economics, De Gruyter, vol. 6(1), pages 125-144, June.
  • Handle: RePEc:bpj:rlecon:v:6:y:2010:i:1:n:6
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    References listed on IDEAS

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    1. Chang, Howard F & Sigman, Hilary, 2000. "Incentives to Settle under Joint and Several Liability: An Empirical Analysis of Superfund Litigation," The Journal of Legal Studies, University of Chicago Press, vol. 29(1), pages 205-236, January.
    2. Jehiel, Philippe & Moldovanu, Benny, 1995. "Negative Externalities May Cause Delay in Negotiation," Econometrica, Econometric Society, vol. 63(6), pages 1321-1335, November.
    3. John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, January.
    4. Kornhauser, Lewis A & Revesz, Richard L, 1994. "Multidefendant Settlements: The Impact of Joint and Several Liability," The Journal of Legal Studies, University of Chicago Press, vol. 23(1), pages 41-76, January.
    5. Kathryn E. Spier, 2002. "Settlement with Multiple Plaintiffs: The Role of Insolvency," Journal of Law, Economics, and Organization, Oxford University Press, vol. 18(2), pages 295-323, October.
    6. Shavell, Steven, 1993. "Suit versus Settlement when Parties Seek Nonmonetary Judgments," The Journal of Legal Studies, University of Chicago Press, vol. 22(1), pages 1-13, January.
    7. Klerman, Daniel, 1996. "Settling Multidefendant Lawsuits: The Advantage of Conditional Setoff Rules," The Journal of Legal Studies, University of Chicago Press, vol. 25(2), pages 445-462, June.
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