Litigation versus legislation: Forum shopping by rent seekers

Citation
Ph. Rubin et al., Litigation versus legislation: Forum shopping by rent seekers, PUBL CHOICE, 107(3-4), 2001, pp. 295-310
Citations number
25
Categorie Soggetti
Politucal Science & public Administration
Journal title
PUBLIC CHOICE
ISSN journal
00485829 → ACNP
Volume
107
Issue
3-4
Year of publication
2001
Pages
295 - 310
Database
ISI
SICI code
0048-5829(200106)107:3-4<295:LVLFSB>2.0.ZU;2-M
Abstract
To change the law, an interest group must choose between lobbying the legis lature and litigating for new precedent. Lobbying becomes more likely as th e relative benefits from rule change become greater, as the costs of lobbyi ng become smaller and as the voting strength of the interest groups becomes larger. Litigating becomes more likely as trial costs fall, as the relativ e benefits from rule change become greater, as the inclination of courts to change existing precedents increases, and as the interest group is involve d in more trials. Examples of using a litigating strategy include the NAACP is its battle for racial integration and attorneys seeking change in tort law. Business, in resisting changes to tort law, has used the judicial proc ess. The nature of equilibrium, if any, is not clear.