Lawsuit as a Signaling Game under Asymmetric Information: A Continuum Types Model
This paper analyzes the signaling nature of litigation selection under asymmetric information. For the robustness of the analysis, we separate the litigation selection process, where the signaling from the informed party plays the key role, from the actual settlement where a more general bargaining method than the usual 'take-it-or-leave-it' is adopted. With full characterization of a sequential equilibrium, our model provides not only a sound theoretic base, but richer testable hypotheses for the comparative static analyses regarding adjudication rate, plaintiff's win rate, and the relationship between these two key indices, both under the defendant’s and the plaintiff's private information.
|Date of creation:||Dec 2000|
|Date of revision:|
|Note:||Bibliography: p. 23-24|
|Contact details of provider:|| Postal: 2-1 Naka, Kunitachi City, Tokyo 186|
Web page: http://www.ier.hit-u.ac.jp/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:hit:hituec:a401. 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)
If references are entirely missing, you can add them using this form.