This paper analyzes deterrence, settlement, and litigation spending under two alternative procedural regimes, i.e., the … adversarial versus inquisitorial systems. We present a general litigation model with three sequential stages---care, settlement …, and litigation stages---and we test the predictions using experimental data. In line with the theory, the inquisitorial …

harm under the negligence standard of liability. Under strict liability, however, firms are indifferent about revealing …

analysis finds that all liability regimes (strict liability, no liability, and negligence based on the socially-efficient due … authorities or regulators). Strict liability is a resilient policy; no liability and negligence are not resilient. Thus, we …