Tilting the table? The use of preliminary injunctions

This paper examines the economic role of preliminary injunctions in legal d isputes. We present a model in which differences in financing costs drive t he use of preliminary injunction and explore the implications of this legal remedy for ex post efficiency and ex ante incentives. Controlling for the nature of the dispute, we examine the relationships between the financial s tatus of litigating parties and whether a preliminary injunction is request ed. The empirical analysis uses detailed data compiled for a sample of 252 patent suits and reveals patterns generally consistent with those suggested by the model.