A Note on Presumptions with Sequential Litigation
USC Law School, Olin Working Paper No. 99-9
27 Pages Posted: 18 Jun 1999
Date Written: June 1999
This note extends the Bernardo, Talley & Welch (1999) model of legal presumptions to study situations where litigation efforts are spent sequentially rather than simultaneously. The equilibria of the litigation stage are presented as functions of the underlying presumption. The equilibria and comparative statics are shown to be qualitatively similar to those of the simultaneous version. However, sequentiality allows the principal to pre commit to a litigation strategy, and thus possibly preempt any litigation effort whatsoever by the agent.
Suggested Citation: Suggested Citation