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Civil Justice Reform: A Mechanism Design Framework

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  • Alon Klement
  • Zvika Neeman

Abstract

The main goal of the court system is to differentiate between those who obeyed the law and those who did not. We describe a mechanism design framework that facilitates the characterization of a set of procedural mechanisms that would minimize the resources used to achieve this goal. This framework can also help to formulate and evaluate procedural rules, and to identify necessary and sufficient conditions for deciding disputes according to substantive law with minimal costs of litigation and delay. We illustrate our approach using three examples: fee-shifting rules, discovery rules, and third-party alternative dispute resolution mechanisms.

Suggested Citation

  • Alon Klement & Zvika Neeman, 2008. "Civil Justice Reform: A Mechanism Design Framework," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 164(1), pages 52-67, March.
  • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200803)164:1_52:cjramd_2.0.tx_2-t
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    References listed on IDEAS

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    1. Bruno Deffains & Dominique Demougin, 2008. "The Inquisitorial and the Adversarial Procedure in a Criminal Court Setting," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 164(1), pages 31-43, March.
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    Cited by:

    1. Hans-Bernd Schäfer, 2008. "Civil Justice Reform: A Mechanism Design Framework. Comment," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 164(1), pages 72-75, March.
    2. Christoph Engel & Urs Schweizer, 2008. "Editorial Preface," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 164(1), pages 1-3, March.

    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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