25 Pages Posted: 17 Jul 2008 Last revised: 12 Nov 2012
Date Written: January 4, 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.
Keywords: litigation, procedure, tort law
JEL Classification: D72, F02, K34
Suggested Citation: Suggested Citation
De Mot, Jef and Depoorter, Ben, Tort Law and Probabilistic Litigation: How to Apply Multipliers to Address the Problem of Negative Value Suits (January 4, 2010). International Review of Law and Economics, Vol. 30, No. 1, 2010. Available at SSRN: https://ssrn.com/abstract=1162268
By Keith Hylton