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Litigation versus Legislation: Forum Shopping by Rent Seekers

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  • Rubin, Paul H
  • Curran, Christopher
  • Curran, John F

Abstract

To change the law, an interest group must choose between lobbying the legislature and litigating for new precedent. Lobbying becomes more likely as the relative benefits from rule change become greater, as the costs of lobbying become smaller and as the voting strength of the interest groups becomes larger. Litigating becomes more likely as trial costs fall, as the relative benefits from rule change become greater, as the inclination of courts to change existing precedents increases, and as the interest group is involved in more trials. Examples of using a litigating strategy include the NAACP is its battle for racial integration and attorneys seeking change in tort law. Business, in resisting changes to tort law, has used the judicial process. The nature of equilibrium, if any, is not clear. Copyright 2001 by Kluwer Academic Publishers

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  • Rubin, Paul H & Curran, Christopher & Curran, John F, 2001. "Litigation versus Legislation: Forum Shopping by Rent Seekers," Public Choice, Springer, vol. 107(3-4), pages 295-310, June.
    • Handle: RePEc:kap:pubcho:v:107:y:2001:i:3-4:p:295-310
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    Citations

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    Cited by:

    1. Giuseppe Dari-Mattiacci & Bruno Deffains, 2007. "Uncertainty of Law and the Legal Process," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(4), pages 627-656, December.
    2. Friehe, Tim & Langlais, Eric, 2015. "On the political economy of public safety investments," International Review of Law and Economics, Elsevier, vol. 41(C), pages 7-16.
    3. Goerke, Laszlo & Neugart, Michael, 2015. "Lobbying and dismissal dispute resolution systems," International Review of Law and Economics, Elsevier, vol. 41(C), pages 50-62.
    4. Matter, Ulrich & Stutzer, Alois, 2015. "Politico-economic determinants of tort reforms in medical malpractice," Working papers 2015/02, Faculty of Business and Economics - University of Basel.
    5. von Wangenheim Georg, 2011. "Evolutionary Theories in Law and Economics and Their Use for Comparative Legal Theory," Review of Law & Economics, De Gruyter, vol. 7(3), pages 737-765, December.
    6. Paul Rubin, 2005. "Public choice and tort reform," Public Choice, Springer, vol. 124(1), pages 223-236, July.
    7. George Tridimas, 2010. "Referendum and the choice between monarchy and republic in Greece," Constitutional Political Economy, Springer, vol. 21(2), pages 119-144, June.
    8. George Tridimas, 2010. "Constitutional judicial review and political insurance," European Journal of Law and Economics, Springer, vol. 29(1), pages 81-101, February.
    9. Tim Friehe, 2013. "The Role of Investment in Environmental Lobbying Contests," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(3), pages 337-352, November.
    10. Tridimas, George, 2007. "Ratification through referendum or parliamentary vote: When to call a non-required referendum?," European Journal of Political Economy, Elsevier, vol. 23(3), pages 674-692, September.
    11. Matter, Ulrich & Stutzer, Alois, 2016. "The role of party politics in medical malpractice tort reforms," European Journal of Political Economy, Elsevier, vol. 42(C), pages 17-35.
    12. De Figueiredo, John M. & De Figueiredo, Rui J. P. Jr., 2002. "The Allocation of Resources by Interest Groups: Lobbying, Litigation and Administrative Regulation," Working papers 4247-02, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    13. John M. de Figueiredo & Rui J.P. de Figueiredo, 2002. "The Allocation of Resources by Interest Groups: Lobbying, Litigation and Administrative Regulation," NBER Working Papers 8981, National Bureau of Economic Research, Inc.
    14. Deepak Somaya & Christine A. McDaniel, 2012. "Tribunal Specialization and Institutional Targeting in Patent Enforcement," Organization Science, INFORMS, vol. 23(3), pages 869-887, June.
    15. Amy McKay, 2011. "The decision to lobby bureaucrats," Public Choice, Springer, vol. 147(1), pages 123-138, April.
    16. Todd J. Zywicki & Edward P. Stringham, 2017. "Austrian law and economics and efficiency in the common law," Chapters, in: Todd J. Zywicki & Peter J. Boettke (ed.), Research Handbook on Austrian Law and Economics, chapter 9, pages 192-208, Edward Elgar Publishing.
    17. Grajzl Peter & Dimitrova-Grajzl Valentina, 2009. "The Choice in the Lawmaking Process: Legal Transplants vs. Indigenous Law," Review of Law & Economics, De Gruyter, vol. 5(1), pages 615-660, November.
    18. William Blomquist & Elinor Ostrom, 2008. "Deliberation, learning, and institutional change: the evolution of institutions in judicial settings," Constitutional Political Economy, Springer, vol. 19(3), pages 180-202, September.

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