Inferences from Litigated Cases
Priest and Klein argued in 1984 that, because of selection effects, the percentage of litigated cases won by plaintiffs will not vary with the legal standard. Many researchers thereafter concluded that one could not make valid inferences about the character of the law from the percentage of cases plaintiffs won, nor could one measure legal change by observing changes in that percentage. This article argues that, even taking selection effects into account, one may be able to make valid inferences from the percentage of plaintiff trial victories, because selection effects are partial. Therefore, although selection mutes changes in the plaintiff trial win rate, it does not make the win rate completely invariant to legal change. This article shows that inferences from litigated cases may be possible under the standard screening and signaling models of settlement, as well as under Priest and Klein's original divergent-expectations model.
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- Waldfogel, Joel, 1995.
"The Selection Hypothesis and the Relationship between Trial and Plaintiff Victory,"
Journal of Political Economy,
University of Chicago Press, vol. 103(2), pages 229-260, April.
- Joel Waldfogel, 1993. "The Selection Hypothesis and the Relationship between Trial and Plaintiff Victory," NBER Working Papers 4508, National Bureau of Economic Research, Inc.
- Daniel Friedman & Donald Wittman, 2007. "Litigation with Symmetric Bargaining and Two-Sided Incomplete Information," Journal of Law, Economics and Organization, Oxford University Press, vol. 23(1), pages 98-126, April.
- Friedman, Daniel & Wittman, Donald, 2003. "Litigation With Symmetric Bargaining And Two-Sided Incomplete Information," Santa Cruz Department of Economics, Working Paper Series qt7vj7k9f6, Department of Economics, UC Santa Cruz.
- Daniel Friedman & Donald Wittman, 2003. "Litigation with Symmetric Bargaining and Two-Sided Incomplete Information," CESifo Working Paper Series 1001, CESifo Group Munich.
- Kessler, Daniel & Meites, Thomas & Miller, Geoffrey P, 1996. "Explaining Deviations from the Fifty-Percent Rule: A Multimodal Approach to the Selection of Cases for Litigation," The Journal of Legal Studies, University of Chicago Press, vol. 25(1), pages 233-259, January.
- Bernardo, Antonio E & Talley, Eric & Welch, Ivo, 2000. "A Theory of Legal Presumptions," Journal of Law, Economics and Organization, Oxford University Press, vol. 16(1), pages 1-49, April.
- Antonio Bernardo & Eric L. Talley & Ivo Welch, 1999. "A Theory of Legal Presumptions," Yale School of Management Working Papers ysm118, Yale School of Management.
- Priest, George L, 1987. "Measuring Legal Change," Journal of Law, Economics and Organization, Oxford University Press, vol. 3(2), pages 193-225, Fall.
- Barry Nalebuff, 1987. "Credible Pretrial Negotiation," RAND Journal of Economics, The RAND Corporation, vol. 18(2), pages 198-210, Summer.
- Ashenfelter, Orley & Eisenberg, Theodore & Schwab, Stewart J, 1995. "Politics and the Judiciary: The Influence of Judicial Background on Case Outcomes," The Journal of Legal Studies, University of Chicago Press, vol. 24(2), pages 257-281, June.
- George L. Priest & Benjamin Klein, 1984. "The Selection of Disputes for Litigation," The Journal of Legal Studies, University of Chicago Press, vol. 13(1), pages 1-56, January.
- Siegelman, Peter & Donohue, John J, III, 1995. "The Selection of Employment Discrimination Disputes for Litigation: Using Business Cycle Effects to Test the Priest-Klein Hypothesis," The Journal of Legal Studies, University of Chicago Press, vol. 24(2), pages 427-462, June.
- Jennifer F. Reinganum & Louise L. Wilde, 1986. "Settlement, Litigation, and the Allocation of Litigation Costs," RAND Journal of Economics, The RAND Corporation, vol. 17(4), pages 557-566, Winter.
- Hylton, Keith N, 1993. "Asymmetric Information and the Selection of Disputes for Litigation," The Journal of Legal Studies, University of Chicago Press, vol. 22(1), pages 187-210, January.
- Shavell, Steven, 1996. "Any Frequency of Plaintiff Victory at Trial Is Possible," The Journal of Legal Studies, University of Chicago Press, vol. 25(2), pages 493-501, June. Full references (including those not matched with items on IDEAS)
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