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Legal expenditure as a rent-seeking game

In: 40 Years of Research on Rent Seeking 2

Author

Listed:
  • Amy Farmer

    (University of Tennessee
    University of Arkansas)

  • Paul Pecorino

    (University of Alabama)

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.

Suggested Citation

  • Amy Farmer & Paul Pecorino, 1999. "Legal expenditure as a rent-seeking game," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 379-396, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-79247-5_22
    DOI: 10.1007/978-3-540-79247-5_22
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