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Tactical dilatory practice in litigation: Evidence from EC merger proceedings

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  • Ormosi, Peter L.

Abstract

The economic analysis of delay in legal procedures has received considerable attention in the past. Some of these works focus on the determinants of delay in litigation but very little analysis has been dedicated to examining if tactical delay may actually help the settlement process. The paper shows that in European merger litigation merging parties may decide to tactically challenge discovery attempts, which causes a delay that is strategically used to gain more time to take the necessary steps to avoid a lengthy in-depth investigation. This type of delay can be beneficial to both merging parties and could also contribute to the saving of regulatory resources, and reduce the risks threatening the success of a potentially efficiency enhancing merger.

Suggested Citation

  • Ormosi, Peter L., 2012. "Tactical dilatory practice in litigation: Evidence from EC merger proceedings," International Review of Law and Economics, Elsevier, vol. 32(4), pages 370-377.
  • Handle: RePEc:eee:irlaec:v:32:y:2012:i:4:p:370-377
    DOI: 10.1016/j.irle.2012.08.002
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    References listed on IDEAS

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    2. Gary M. Fournier & Thomas W. Zuehlke, 1996. "The Timing of Out-of-Court Settlements," RAND Journal of Economics, The RAND Corporation, vol. 27(2), pages 310-321, Summer.
    3. Lucian Arye Bebchuk, 1984. "Litigation and Settlement under Imperfect Information," RAND Journal of Economics, The RAND Corporation, vol. 15(3), pages 404-415, Autumn.
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    5. Tomaso Duso & Klaus Gugler & Florian Szücs, 2013. "An Empirical Assessment of the 2004 EU Merger Policy Reform," Economic Journal, Royal Economic Society, vol. 123(11), pages 596-619, November.
    6. Williams, Philip L. & Williams, Ross A., 1994. "The cost of civil litigation: An empirical study," International Review of Law and Economics, Elsevier, vol. 14(1), pages 73-86, March.
    7. Cosnita, Andreea & Tropeano, Jean-Philippe, 2009. "Negotiating remedies: Revealing the merger efficiency gains," International Journal of Industrial Organization, Elsevier, vol. 27(2), pages 188-196, March.
    8. Gong, Jiong & McAfee, R Preston, 2000. "Pretrial Negotiation, Litigation, and Procedural Rules," Economic Inquiry, Western Economic Association International, vol. 38(2), pages 218-238, April.
    9. Wang, Gyu Ho & Kim, Jeong-Yoo & Yi, Jong-Goo, 1994. "Litigation and Pretrial Negotiation under Incomplete Information," Journal of Law, Economics, and Organization, Oxford University Press, vol. 10(1), pages 187-200, April.
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    Cited by:

    1. Florian Smuda & Patrice Bougette & Kai Hüschelrath, 2015. "Determinants of the Duration of European Appellate Court Proceedings in Cartel Cases," Journal of Common Market Studies, Wiley Blackwell, vol. 53(6), pages 1352-1369, November.
    2. Sven Heim & Kai Hüschelrath & Ulrich Laitenberger, 2016. "The Duration of the EC Merger Control Process: Determinants and the Impact of the 2004 Merger Regulation Reform," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 23(1), pages 37-62, February.
    3. Chopard, Bertrand & Cortade, Thomas & Cosnita-Langlais, Andreea, 2015. "Success and failure of bargaining in merger control: The case of asset divestitures," Economic Modelling, Elsevier, vol. 49(C), pages 254-259.

    More about this item

    Keywords

    Settlement delay; Litigation costs; Antitrust law; EC merger proceedings;

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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