Annette, Kirstein; Roland, Kirstein; Hans, Gerhard - In: Review of Law & Economics 6 (2010) 1, pp. 107-124
We analyze the impact of Bad Debt Loss Insurance on settlement outcomes. A success in a settlement or trial can turn into a disaster when the defendant goes bankrupt before paying the plaintiff's claim. The starting point of our paper is a simple trial and litigation model with perfect and...