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The Puzzling Underuse of Arbitration in Post-Communism: A Law and Economics Analysis

  • Schönfelder, Bruno
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    The paper attempts to explain the failure of postcommunist traders exemplified by Balkan traders to make use of arbitration courts by means of the rational choice of forum approach offered by the law and economics movement. Conjectures about traders? behaviour derived by combining this approach with the constraints set by institutional features of Balkan countries, in particular Bulgaria and Croatia, are confronted with experience. As it turns out the successes yielded by the rational choice of forum approach are very limited. This may be a dissapointment to its most fervent advocates, but is nevertheless useful, because it suggests a more flexible approach.

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    File URL: http://econstor.eu/bitstream/10419/22511/1/schoenfe_7_2005.pdf
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    Paper provided by TU Bergakademie Freiberg, Faculty of Economics and Business Administration in its series Freiberg Working Papers with number 2005,07.

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    Date of creation: 2005
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    Handle: RePEc:zbw:tufwps:200507
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    1. Greif, Avner & Milgrom, Paul & Weingast, Barry R, 1994. "Coordination, Commitment, and Enforcement: The Case of the Merchant Guild," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 745-76, August.
    2. Benson, Bruce L, 1995. "An Exploration of the Impact of Modern Arbitration Statutes on the Development of Arbitration in the United States," Journal of Law, Economics and Organization, Oxford University Press, vol. 11(2), pages 479-501, October.
    3. Bernstein, Lisa, 1992. "Opting Out of the Legal System: Extralegal Contractual Relations in the Diamond Industry," The Journal of Legal Studies, University of Chicago Press, vol. 21(1), pages 115-57, January.
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