Truth, Effort, and the Legal Battle

In: Public choice, Band 108, Heft 1-2, S. 169-195

Abstract

In lawsuits, relative success depends upon two main factors: the true degree of fault, & the efforts invested on each side. A proposed Litigation Success Function displays this dependence while satisfying other essential properties. Under two different protocols, Nash-Cournot & Stackelberg, solutions are obtained for the litigation efforts, proportionate success, & values of the lawsuit on each side. Outcomes are evaluated in terms of two normative criteria; (i) achieving "justice" (interpreted as equality between Defendant fault & relative Plaintiff success) & (ii) minimizing aggregate litigation cost. Achievement of these aims is determined by the decisiveness of litigation effort relative to true fault. 8 Figures, 26 References. Adapted from the source document.