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Preordered service in contract enforcement

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  • Auerbach, Jan U.
  • Fonseca, Miguel A.

Abstract

To address delay and backlog at civil courts, we propose a procedural rule that we refer to as preordered service to replace sequential service of low-profile cases for breach of contract. Courts preannounce a list that uses uniquely identifying information to rank potential low-profile contracts, like a combination of contracting parties' taxpayer numbers. They use this list to schedule initial hearings of filed low-profile contract cases in that order. In theory, unlike sequential service, preordered service ensures efficiency in a population of investment games through unraveling. Results from a laboratory experiment suggest that it may substantially reduce court caseloads.

Suggested Citation

  • Auerbach, Jan U. & Fonseca, Miguel A., 2020. "Preordered service in contract enforcement," Games and Economic Behavior, Elsevier, vol. 122(C), pages 130-149.
    • Handle: RePEc:eee:gamebe:v:122:y:2020:i:c:p:130-149
    DOI: 10.1016/j.geb.2020.04.007
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    More about this item

    Keywords

    Judicial system; Courts; Judiciary performance; Legal procedure; Civil cases; Caseload; Contract enforcement; Population of investment games; Unraveling; Experiments;
    All these keywords.

    JEL classification:

    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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