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The Selection Hypothesis and the Relationship between Trial and Plaintiff Victory

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  • Waldfogel, Joel

Abstract

This paper develops implications of the selection hypothesis of George L. Priest and Benjamin Klein (1984) for the relationship between trial rates and plaintiff win rates. The author finds strong evidence for the selection hypothesis in estimated relationships between trial rates and plaintiff win rates at trial across case types and judges. He then structurally estimates the model on judge data, yielding estimates of the model's major parameters (the decision standard, the degree of stake asymmetry, and the uncertainty parameter) for each of three major case types, contracts, property rights, and torts. Copyright 1995 by University of Chicago Press.

Suggested Citation

  • 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.
    • Handle: RePEc:ucp:jpolec:v:103:y:1995:i:2:p:229-60
    DOI: 10.1086/261982
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    References listed on IDEAS

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    1. Eisenberg, Theodore, 1990. "Testing the Selection Effect: A New Theoretical Framework with Empirical Tests," The Journal of Legal Studies, University of Chicago Press, vol. 19(2), pages 337-358, June.
    2. 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.
    3. White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, vol. 50(1), pages 1-25, January.
    4. Elder, Harold W, 1989. "Trials and Settlements in the Criminal Courts: An Empirical Analysis of Dispositions and Sentencing," The Journal of Legal Studies, University of Chicago Press, vol. 18(1), pages 191-208, January.
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    More about this item

    JEL classification:

    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics

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