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- W4200535360 abstract "• We study how adversarial efforts in litigation contests affect both parties. • We find that adversarial efforts will always be exerted in a litigation that involves sufficiently high awards. • In some cases, litigant efforts in equilibrium are mostly adversarial. • In asymmetric litigation, adversarial efforts invariably inhibit settlement. • In symmetric cases with sufficiently high awards, the existence of adversarial efforts increases parties' willingness to settle. We consider a simple model of litigation contests in which each party dedicates both “case-advancing” efforts that directly increase her probability of winning, as well as “adversarial” efforts, which harm her opponent’s strategy and decrease his likelihood of prevailing. Our model characterizes adversarial litigation efforts and the equilibrium investment in such efforts by both parties, subject to the value of winning and the costs of adversarial efforts vis-à-vis case-advancing ones. We find that litigation will always involve adversarial efforts if awards are sufficiently high, and that litigation in which most efforts are adversarial is a plausible scenario. Furthermore, in a relatively symmetric litigation that involves high awards, adversarial efforts increase the parties' likelihood of reaching a settlement agreement. In asymmetric cases, however, the existence of adversarial efforts inhibits settlement irrespective of the awards at stake." @default.
- W4200535360 created "2021-12-31" @default.
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- W4200535360 date "2022-03-01" @default.
- W4200535360 modified "2023-10-16" @default.
- W4200535360 title "Litigation with adversarial efforts" @default.
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- W4200535360 doi "https://doi.org/10.1016/j.irle.2021.106042" @default.
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