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This paper considers settlement negotiations between a single defendant and N plaintiffs when there are fixed costs of litigation. When making simultaneous take-it-or-leave-it offers to the plaintiffs, the defendant adopts a divide-and-conquer strategy. Plaintiffs settle their claims for less...
Persistent link: https://www.econbiz.de/10005582012
medium Italian enterprises highlights the low use of capital, the local roots, the importance of product innovation, the … aspect stressed in the work is that the processes of innovation and internationalization that underlie the strategies of …
Persistent link: https://www.econbiz.de/10010743508
of innovation as well as correlative data that show a negative correlation between income inequality and levels of … innovativeness. Our two models suggest that unequal access to problems slows innovation by reducing the level and variety of human … capital applied to problems. More interestingly, both models show that the rate of innovation decline becomes much more …
Persistent link: https://www.econbiz.de/10010835767
In this paper we consider two means for implementing the informational benefits of the Scottish verdict, which we have previously shown provides increased information to society and reduces the misapplication of informal sanctions on defendants and prosecutors. First, we consider a proposal by...
Persistent link: https://www.econbiz.de/10011255432
We consider how parties’ formal contracts are underpinned by their ongoing relationship and how welfare changes as the legal system improves. Regardless of impatience, the parties write formal contracts that they would not honor–despite stipulated penalties–if they interacted only once....
Persistent link: https://www.econbiz.de/10010662396
We analyse bonus payments for officials, who transfer payments truthfully to the government rather than collecting bribes. We show that optimised bonus payments are always beneficial to the government, making them a more effective anti-corruption measure than simple wage increases.
Persistent link: https://www.econbiz.de/10010665681
to non-cooperative game theory and to economics of information. In the second part, liquidation belongs to axiomatic … sharing theory and to cooperative game theory. We give a case study that enables to characterize, on the one hand, the …
Persistent link: https://www.econbiz.de/10011187166
Once a contract has been agreed by two agents, the problem of renegotiating breach under two-sided asymmetric information on the agents' outside options is equivalent to the problem of bilateral trade with uncertain gains. Thus, the theorem of Myerson and Satterthwaite (1983) implies the...
Persistent link: https://www.econbiz.de/10010629813
I examine the case where fulfillment of a contractual commitment is only imperfectly verifiable and ask whether the court should then tell the truth regarding the action in dispute. I show that truth seeking does not maximize the expected surplus from contractual relationships. From the parties'...
Persistent link: https://www.econbiz.de/10005823381
Most insurance companies publish few data on the occurrence and detection of insurance fraud. This stands in contrast to the previous literature on costly state verification, which has shown that it is optimal to commit to an auditing strategy. The credible announcement of thoroughly auditing...
Persistent link: https://www.econbiz.de/10010738053