IDEAS home Printed from https://ideas.repec.org/p/uct/uconnp/2015-13.html
   My bibliography  Save this paper

Litigation and the Product Rule: A Rent Seeking Approach

Author

Listed:
  • Jef De Mot

    (University of Ghent)

  • Thomas J. Miceli

    (University of Connecticut)

Abstract

This paper examines the suppression of the product rule in litigation from a rent seeking perspective. We show that there are some important arguments in favor of not applying the product rule. First, only when the product rule is suppressed is the plaintiff's equilibrium probability of winning equal to the product of the inherent quality of the several issues at stake. The probability of winning is always lower when the product rule is used, and this is especially so for relatively strong cases. Second, for many of the weakest cases, the expected value of the plaintiff is larger when the product rule is used. Third, for relatively strong cases, the litigation expenditures are typically larger when the product rule is used. This further decreases the plaintiff's expected value for strong cases.

Suggested Citation

  • Jef De Mot & Thomas J. Miceli, 2015. "Litigation and the Product Rule: A Rent Seeking Approach," Working papers 2015-13, University of Connecticut, Department of Economics.
  • Handle: RePEc:uct:uconnp:2015-13
    as

    Download full text from publisher

    File URL: http://web2.uconn.edu/economics/working/2015-13.pdf
    File Function: Full text
    Download Restriction: no

    More about this item

    Keywords

    product rule; litigation costs; rent seeking;

    JEL classification:

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    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:uct:uconnp:2015-13. 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: (Mark McConnel). General contact details of provider: http://edirc.repec.org/data/deuctus.html .

    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.