The impact of defendant offers into court on negotiation in the shadow of the law: experimental evidence
A common procedural arrangement that is thought to influence the pre-trial settlement of civil disputes is one which allows the defendant to make an offer to settle which if it is rejected by the plaintiff and not subsequently bettered by the judge's trial decision will affect the division of the legal costs between the two sides. Operating under Federal Rule 68 in the USA, as "offers to settle" or "payments into court" in England and Wales, and as "tenders" in Scotland, these devices are generally assumed to encourage settlement. This paper extends the theoretical model of Miller (1986) and Chung (1996a) to the British context, and presents some experimental evidence on how agents react to such arrangements. The rule seems to have little empirical impact on the propensity to settle and to favour the defendant in terms of the level of settlement.
|Date of creation:||Apr 1999|
|Date of revision:|
|Contact details of provider:|| Postal: 31 Buccleuch Place, EH8 9JT, Edinburgh|
Web page: http://www.econ.ed.ac.uk/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anderson, David A, 1994. "Improving Settlement Devices: Rule 68 and Beyond," The Journal of Legal Studies, University of Chicago Press, vol. 23(1), pages 225-46, January.
- 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 261-86, January.
- Tversky, Amos & Kahneman, Daniel, 1986. "Rational Choice and the Framing of Decisions," The Journal of Business, University of Chicago Press, vol. 59(4), pages S251-78, October.
- Landes, William M, 1971.
"An Economic Analysis of the Courts,"
Journal of Law and Economics,
University of Chicago Press, vol. 14(1), pages 61-107, April.
- Coursey, Don L. & Stanley, Linda R., 1988. "Pretrial bargaining behavior within the shadow of the law: Theory and experimental evidence," International Review of Law and Economics, Elsevier, vol. 8(2), pages 161-179, December.
When requesting a correction, please mention this item's handle: RePEc:edn:esedps:29. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gina Reddie)
If references are entirely missing, you can add them using this form.