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Why not adopt a loser-pays-all rule in criminal litigation?

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  • Echazu, Luciana
  • Garoupa, Nuno

Abstract

In this paper we consider the potential effects that the application of a loser-pays-all rule may have on criminal litigation, including the decision to prosecute, criminal deterrence and legal error. We find that the effects of fee shifting on deterrence and on miscarriage of justice go in opposite directions. We also look at the effects of this rule on the rate of settlements (plea-bargaining) and when one party is wealth-constrained. We apply the insights of our model to current policy discussions such as the use of RICO proceedings and the financing of enforcement authorities in the United States.

Suggested Citation

  • Echazu, Luciana & Garoupa, Nuno, 2012. "Why not adopt a loser-pays-all rule in criminal litigation?," International Review of Law and Economics, Elsevier, vol. 32(2), pages 233-241.
  • Handle: RePEc:eee:irlaec:v:32:y:2012:i:2:p:233-241
    DOI: 10.1016/j.irle.2012.01.004
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    References listed on IDEAS

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    Cited by:

    1. Doménech, Gabriel & Puchades, Miguel, 2015. "Compensating acquitted pre-trial detainees," International Review of Law and Economics, Elsevier, vol. 43(C), pages 167-177.

    More about this item

    Keywords

    Loser-pays-all rule; Fee shifting; Prosecutor; Criminal litigation;

    JEL classification:

    • K1 - Law and Economics - - Basic Areas of Law
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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