IDEAS home Printed from
   My bibliography  Save this paper

Litigation Selection as a Signal under Asymmetric Information: A Two-Type Model with Alternating Bargaining Offers


  • Kim, Iljoong
  • Kim, Jaehong


This paper studies the signaling role of the litigation/settlement selection under asymmetric information. As an attempt to improve existing asymmetric information theory, we separate litigation/settlement selection process and the actual settlement bargaining process, and adopt an infinitely repeated settlement bargaining with alternating offers, instead of the extreme 'take-it-or-leave-it' offer which has been frequently assumed in current literature. Upon the explicit derivation of the sequential equilibria, we interpret heuristically the role of asymmetric information in litigation selection, and provide comprehensive comparative static analyses for more concrete empirical testing of asymmetric information theory.

Suggested Citation

  • Kim, Iljoong & Kim, Jaehong, 2000. "Litigation Selection as a Signal under Asymmetric Information: A Two-Type Model with Alternating Bargaining Offers," Discussion Paper Series a400, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:hituec:a400
    Note: Bibliography: p. 17

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    asymmetric information; signaling; litigation; settlement; win rate;

    JEL classification:

    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hit:hituec:a400. 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: (Hiromichi Miyake) or (Editorial board). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.