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A microeconomic model of the demand of civil justice: is one institutional context better than another?

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  • Maria Antonelli
  • Veronica Grembi

Abstract

The paper analyzes how institutional elements affect the decision to file of risk neutral agents. In particular, we introduce an objective probability of winning given by the combination of a precedent-weight parameter (defining the type of legal system) and a transparency factor. 603,000 simulated trials, shaped upon our model, reveal two main findings: (1) the transparency level matters in terms of inefficient decisions; (2) a precedent driven system is not necessarily more efficient. Hence, policy makers should invest in increasing the level of information among courts and between courts and the parties both in civil and common law systems. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Maria Antonelli & Veronica Grembi, 2013. "A microeconomic model of the demand of civil justice: is one institutional context better than another?," European Journal of Law and Economics, Springer, vol. 36(2), pages 295-318, October.
    • Handle: RePEc:kap:ejlwec:v:36:y:2013:i:2:p:295-318
    DOI: 10.1007/s10657-012-9328-1
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    References listed on IDEAS

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    10. Lucian Arye Bebchuk, 1984. "Litigation and Settlement under Imperfect Information," RAND Journal of Economics, The RAND Corporation, vol. 15(3), pages 404-415, Autumn.
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    Cited by:

    1. Przemyslaw Banasik & Monika Odlanicka-Poczobutt & Maciej Wolny & Sylwia Morawska, 2020. "Preliminary Identification of Quantitative Factors Determining the Duration of Court Proceedings in Commercial Cases," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 279-293.

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    More about this item

    Keywords

    Judicial precedent; Transparency of the legal systems; Decision to file; Comparative efficiency of legal systems; K40; K41; H23;
    All these keywords.

    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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