The papers show that Legal Cost Insurance (LCI) is a device to enhance potential litigants' bargaining position rather than to re-allocate risk. Being insured decreases the cost an insured party has to bear if settlement negotiations fail and the case goes to trial. This shifts the threat...

Die bei unvorsichtiger Internetnutzung möglichen Urheberrechtsverletzungen können erhebliche Schadenssummen aufwerfen; hinzu können Ersatzansprüche für die Kosten von Abmahnungen kommen. Verschuldenshaftung mit der Möglichkeit zur Haftungsbefreiung sollte im Bereich des privaten...

The paper proposes a mechanism that may implement first-best effort in simultaneous teams. Within the framework of this mechanism, each team members is obliged to make a fixed, non-contingent payment, and chooses his individual effort. After the output is produced, each team member receives a...

In this paper, we analyze the impact of Bad Debt Loss Insurance on settlement outcomes. A huge success in a settlement or trial may turn into a disaster when the defendant goes bankrupt. "Rainmakers" face the following dilemma: the greater the success in court, the greater the defendant's...