Pretrial negotiation, litigation, and procedural rules
将民事纠纷解决建模为两阶段博弈,发现英国规则(败诉方支付诉讼费)通常使和解偏离公正基准,整体福利偏向提出要约方,但律师始终受益。
We model the civil dispute resolution process as a two-stage game with the parties bargaining to reach a settlement in the first stage and then playing a litigation expenditure game at trial in the second stage. We find that the English rule shifts the settlement away from the interim fair and unbiased settlement in most circumstances. Overall welfare changes are in favor of the party who makes the offer in the pretrial negotiation stage. Lawyers however, always benefit from the English rule, because fee shifting increases the stake of the trial and thus intensifies the use of the legal service.