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- Title
PRETRIAL NEGOTIATION, LITIGATION, AND PROCEDURAL RULES.
- Authors
Gong, Jiong; McAfee, R. Preston
- Abstract
We model the civil dispute resolution process as a two-stage game with the parties bargaining to reach a settlement in the first stage and then playing a litigation expenditure game at trial in the second stage. We find that the English rule shifts the settlement away from the interim fair and unbiased settlement in most circumstances. Overall welfare changes are in favor of the party who makes the offer in the pretrial negotiation stage. Lawyers however, always benefit from the English rule, because fee shifting increases the stake of the trial and thus intensifies the use of the legal service. (JEL K40)
- Subjects
CONFLICT management; DISPUTE resolution
- Publication
Economic Inquiry, 2000, Vol 38, Issue 2, p218
- ISSN
0095-2583
- Publication type
Article
- DOI
10.1093/ei/38.2.218