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Comparative Analysis of Litigation Systems: An Auction-Theoretic Approach

Author

Listed:
  • Michael R. Baye

    (Indiana University)

  • Dan Kovenock

    (Purdue University)

  • Casper G. de Vries

    (Erasmus University Rotterdam)

Abstract
A simple auction-theoretic framework is used to examine symmetric litigation environments where the legal ownership of a disputed asset is unknown to the court. The court observes only the quality of the case presented by each party, and awards the asset to the party presenting the best case. Rational litigants influence the quality of their cases by hiring skilful attorneys. This framework permits us to compare the equilibrium legal expenditures that arise under a continuum of legal systems. The British rule, Continental rule, American rule, and some recently proposed legal reforms are special cases of our model. Published in The Economic Journal (2005) 115, 583-601.

Suggested Citation

  • Michael R. Baye & Dan Kovenock & Casper G. de Vries, 2000. "Comparative Analysis of Litigation Systems: An Auction-Theoretic Approach," Tinbergen Institute Discussion Papers 00-103/2, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20000103
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    References listed on IDEAS

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    More about this item

    Keywords

    Auctions; contests; litigation; fee-shifting;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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