Truth, effort, and the legal battle

Citation
J. Hirshleifer et E. Osborne, Truth, effort, and the legal battle, PUBL CHOICE, 108(1-2), 2001, pp. 169-195
Citations number
26
Categorie Soggetti
Politucal Science & public Administration
Journal title
PUBLIC CHOICE
ISSN journal
00485829 → ACNP
Volume
108
Issue
1-2
Year of publication
2001
Pages
169 - 195
Database
ISI
SICI code
0048-5829(200107)108:1-2<169:TEATLB>2.0.ZU;2-C
Abstract
In lawsuits, relative success depends upon two main factors: the true degre e of fault, and the efforts invested on each side. A proposed Litigation Su ccess Function displays this dependence while satisfying other essential pr operties. Under two different protocols, Nash-Cournot and Stackelberg, solu tions are obtained for the litigation efforts, proportionate success, and v alues of the lawsuit on each side. Outcomes are evaluated in terms of two n ormative criteria; (i) achieving `justice' (interpreted as equality between Defendant fault and relative Plaintiff success) and (ii) minimizing aggreg ate litigation cost. Achievement of these aims is determined by the decisiv eness of litigation effort relative to true fault.