Tort Law and Probabilistic Litigation: How to Apply Multipliers to Address the Problem of Negative Value Suits
Jef De Mot
Ghent University-Universiteit Gent - Faculty of Law
University of California Hastings College of Law; Ghent University - Center for Advanced Studies in Law & Economics
January 4, 2010
International Review of Law and Economics, Vol. 30, No. 1, 2010
This Article advances a proposal that brings to life valuable lawsuits that litigation costs currently discourage. Our proposal converts claims with negative expected values into positive expected value claims by implementing a novel system involving flexible conditional multipliers. Our proposal has two components. First, under the proposed system a plaintiff is allowed to select a damage multiplier that determines the amount of damages the plaintiff will receive if the litigation is successful. Second, courts select cases for litigation randomly with a probability inverse to the multiplier the plaintiff selected.
Number of Pages in PDF File: 25
Keywords: litigation, procedure, tort law
JEL Classification: D72, F02, K34Accepted Paper Series
Date posted: July 17, 2008 ; Last revised: November 12, 2012
© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo8 in 0.360 seconds