Economic Theories of Settlement Bargaining

Posted: 18 Oct 2010

See all articles by Andrew F. Daughety

Andrew F. Daughety

Department of Economics, Vanderbilt University

Jennifer F. Reinganum

Vanderbilt University - College of Arts and Science - Department of Economics

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Date Written: December 2005

Abstract

We briefly review two basic models of settlement bargaining based on concepts from information economics and game theory. We then discuss how these models have been generalized to address issues that arise when there are more than two litigants with related cases. Linkages between cases can arise because of exogenous factors such as correlated culpability or damages, or they can be generated by discretionary choices on the part of the litigants themselves or by legal doctrine and rules of procedure.

Suggested Citation

Daughety, Andrew F. and Reinganum, Jennifer F., Economic Theories of Settlement Bargaining (December 2005). Annual Review of Law and Social Science (2005), Vol. 1, pp. 35-59, 2005, Available at SSRN: https://ssrn.com/abstract=1693347 or http://dx.doi.org/10.1146/annurev.lawsocsci.1.041604.115856

Andrew F. Daughety (Contact Author)

Department of Economics, Vanderbilt University ( email )

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Jennifer F. Reinganum

Vanderbilt University - College of Arts and Science - Department of Economics ( email )

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