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Legal Expenditure as a Rent-Seeking Game

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  • Farmer, Amy
  • Pecorino, Paul

Abstract

Legal expenditures at a civil trial constitute an interesting type of rent-seeking contest. In civil litigation there is a natural interaction between the objective merits of the case and the outcome of the contest. Institutions such as fee shifting do not generally have a counterpart in other rent-seeking contests. The endogenous decision to participate in the rent-seeking contest corresponds to the decision by the plaintiff to bring a case, and the decision by the defendant to defend it. The desirability of fee shifting is very sensitive to the value of the parameter, which describes the legal technology. Copyright 1999 by Kluwer Academic Publishers

Suggested Citation

  • Farmer, Amy & Pecorino, Paul, 1999. "Legal Expenditure as a Rent-Seeking Game," Public Choice, Springer, vol. 100(3-4), pages 271-288, September.
  • Handle: RePEc:kap:pubcho:v:100:y:1999:i:3-4:p:271-88
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