Arbeitspapier

Judicial Detection Skill, Litigational Opportunism, and Contractual Compliance

Mutually beneficial agreements might fail if the parties fear contractual opportunism. Litigation is supposed to prevent this, but still leaves room for litigational opportunism: Even knowing that the opponent has fulfilled his obligations, a party might bring suit. We show that with positive judicial detection skill, litigation fees can be designed to deter opportunistic suits and simultaneously induce bilateral contractual compliance. With zero detection skill, as implicitly assumed by most of the economic literature on litigation, bilateral contractual compliance cannot be induced. We apply our results to evaluate the American and the British cost allocation rules.

Sprache
Englisch

Erschienen in
Series: CSLE Discussion Paper ; No. 96-04

Klassifikation
Wirtschaft
Contract Law
Litigation Process
Noncooperative Games
Thema
procedural law
frivolous suits
positive detection skill
verifiability
litigation costs
American rule
British rule

Ereignis
Geistige Schöpfung
(wer)
Schmidtchen, Dieter
Kirstein, Roland
Ereignis
Veröffentlichung
(wer)
Universität des Saarlandes, Center for the Study of Law and Economics (CSLE)
(wo)
Saarbrücken
(wann)
1996

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Schmidtchen, Dieter
  • Kirstein, Roland
  • Universität des Saarlandes, Center for the Study of Law and Economics (CSLE)

Entstanden

  • 1996

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