Chilling or Learning? The Effect of Negative Feedback on Inter-judicial Cooperation in Nonhierarchical Referral Regimes

We exploit the nonhierarchical nature of the European Union legal system to investigatethe effect of negative feedback on inter-court cooperation. We argue that, in thecontext of a nonhierarchical referral system, formal dismissals expose shirking whichthe principal, the referral court, has no formal power to curb. Yet, we find that whenreferring courts have experienced a formal dismissal, they are not only more likely toresubmit but are also more likely to see their references accepted. This learning effectsuggests that referring courts expect large benefits from cooperation. We interpret ourempirical findings in light of the team theory of adjudication