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Judicial Auditing

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  • Spitzer, Matt
  • Talley, Eric

Abstract

This paper presents a simple framework for analyzing a hierarchical system of judicial auditing. We concentrate on (what we perceive to be) the two principal reasons that courts and/or legislatures tend to scrutinize the decisions of lower-echelon actors: imprecision and ideological bias. In comparing these two reasons, we illustrate how each may yield systematically distinct auditing and reversal behaviors. While auditing for imprecision tends to bring about evenhanded review/reversal, auditing for political bias tends to be contingent on the first mover's chosen action, Examples of these tendencies can be found in a number of legal applications, including administrative law, constitutional law, and interpretive theories of jurisprudence. Our analysis also suggests that political "diversity" among initial decisionmakers (in addition to its other laudable goals) may be an important and generally underappreciated means for economizing on judicial administrative costs. Copyright 2000 by the University of Chicago.

Suggested Citation

  • Spitzer, Matt & Talley, Eric, 2000. "Judicial Auditing," The Journal of Legal Studies, University of Chicago Press, vol. 29(2), pages 649-683, June.
  • Handle: RePEc:ucp:jlstud:v:29:y:2000:i:2:p:649-83
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    File URL: http://dx.doi.org/10.1086/468088
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    References listed on IDEAS

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    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
    2. Kathryn E. Spier, 1994. "Pretrial Bargaining and the Design of Fee-Shifting Rules," RAND Journal of Economics, The RAND Corporation, pages 197-214.
    3. Chung, Tai-Yeong, 1996. "Settlement of Litigation under Rule 68: An Economic Analysis," The Journal of Legal Studies, University of Chicago Press, vol. 25(1), pages 261-286, January.
    4. Jennifer F. Reinganum & Louise L. Wilde, 1986. "Settlement, Litigation, and the Allocation of Litigation Costs," RAND Journal of Economics, The RAND Corporation, pages 557-566.
    5. Lucian Arye Bebchuk, 1984. "Litigation and Settlement under Imperfect Information," RAND Journal of Economics, The RAND Corporation, pages 404-415.
    6. Anderson, David A, 1994. "Improving Settlement Devices: Rule 68 and Beyond," The Journal of Legal Studies, University of Chicago Press, vol. 23(1), pages 225-246, January.
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    Citations

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    Cited by:

    1. Kamphorst, Jurjen J.A. & van Velthoven, Ben C.J., 2009. "The introduction of an appeals court in Dutch tax litigation," International Review of Law and Economics, Elsevier, vol. 29(1), pages 13-24, March.
    2. Luca Anderlini & Leonardo Felli & Alessandro Riboni, 2014. "Why Stare Decisis?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 17(4), pages 726-738, October.
    3. Leonardo Felli & Alessandro Riboni & Luca Anderlini, 2007. "Statute Law or Case Law?," 2007 Meeting Papers 952, Society for Economic Dynamics.
    4. repec:kap:ejlwec:v:43:y:2017:i:3:d:10.1007_s10657-015-9512-1 is not listed on IDEAS
    5. Magnus Söderberg, 2008. "Uncertainty and regulatory outcome in the Swedish electricity distribution sector," European Journal of Law and Economics, Springer, vol. 25(1), pages 79-94, February.
    6. Chifeng Dai, 2010. "Imperfect verification, appeals, and limited liability," Journal of Regulatory Economics, Springer, vol. 37(1), pages 23-41, February.
    7. A. Mitchell Polinsky & Steven Shavell, 2005. "Economic Analysis of Law," Discussion Papers 05-005, Stanford Institute for Economic Policy Research.
    8. Bharat Bhole & Bríd Gleeson Hanna, 2009. "An analytical framework for interpreting appellate court data," Economics Bulletin, AccessEcon, vol. 29(2), pages 1163-1174.
    9. Dai, Chifeng, 2009. "The appeals process in principal-agent relationships," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 451-462, August.
    10. Aspasia Tsaoussi & Eleni Zervogianni, 2010. "Judges as satisficers: a law and economics perspective on judicial liability," European Journal of Law and Economics, Springer, vol. 29(3), pages 333-357, June.
    11. Santolino, Miguel, 2010. "Determinants of the decision to appeal against motor bodily injury judgements made by Spanish trial courts," International Review of Law and Economics, Elsevier, vol. 30(1), pages 37-45, March.

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