defendants, but has not examined how they affect deterrence. This paper examines whether there are circumstances under which … frivolous suits might actually increase deterrence, and thereby possibly improve welfare. The reason this is possible is that in … plaintiffs. The fact that some uninjured plaintiffs will succeed in obtaining settlements may therefore affect the care and …

defendants, but has not examined how they affect deterrence. This paper considers whether there are circumstances under which … frivolous suits might actually increase deterrence, and thereby possibly improve welfare. The reason this is possible is that in … plaintiffs. The fact that some uninjured plaintiffs will succeed in obtaining settlements may therefore affect the care and …

demand. Such an outcome is established for a scenario in which the number of cases is endogenous based on the deterrence …

This paper re-examines the social versus private value of lawsuits when both injurers and victims can take care. The … possibility of victim care does, however, alter the calculation of the deterrent effect of lawsuits. In particular, because … increases in direct relation to the productivity of victim care in lowering accident risk. …

costs into the model provides a justification for punitive damage caps. At the optimum, caps balance deterrence against the …

of producing deterrence and driving the market towards an efficient outcome. In this vein, the paper argues that class …