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Reducing Demand for Litigation in Consumer Disputes—a Randomized Field Experiment with Social Information

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  • Andreas Maaløe Jespersen

    (Roskilde University)

Abstract

It has long been argued that alternative dispute resolution is superior to traditional court litigation. The paper reviews traditional and behavioural arguments and findings for why litigation rates remain high. The paper then reports on a natural field experiment designed to test how to improve disputes between consumers and businesses in Denmark resolution by including social information into the dispute process. The experiment demonstrates that social information significantly affects litigants’ need for litigation, but that the effect on settlement rates is non-significant. The results are discussed along with suggestions for possible future research into improving the willingness to cooperate in consumer disputes.

Suggested Citation

  • Andreas Maaløe Jespersen, 2018. "Reducing Demand for Litigation in Consumer Disputes—a Randomized Field Experiment with Social Information," Journal of Consumer Policy, Springer, vol. 41(1), pages 21-32, March.
    • Handle: RePEc:kap:jcopol:v:41:y:2018:i:1:d:10.1007_s10603-018-9370-7
    DOI: 10.1007/s10603-018-9370-7
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    References listed on IDEAS

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    Cited by:

    1. Marco Omizzolo & Sodano Pina, 2022. "The Covid-19 Between State of Emergency and Exception in Italy and Its Consequences on Human Rights," European Journal of Social Sciences Articles, Revistia Research and Publishing, vol. 5, January -.

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