Economic Theories of Settlement Bargaining
We briefly review two basic models of settlement bargaining based on concepts from information economics and game theory. We then discuss how these models have been generalized to address issues that arise when there are more than two litigants with related cases. Linkages between cases can arise due to exogenous factors such as correlated culpability or damages, or they can be generated by discretionary choices on the part of the litigants themselves or by legal doctrine and rules of procedure.
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| Date of creation: | Apr 2005 |
| Date of revision: | |
| Handle: | RePEc:van:wpaper:0508 |
| Contact details of provider: | Web page: http://www.vanderbilt.edu/econ/wparchive/index.html
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- Kathryn E. Spier, 2003. "“Tied to the Mast†: Most-Favored-Nation Clauses in Settlement Contracts," The Journal of Legal Studies, University of Chicago Press, vol. 32(1), pages 91-120, 01.
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