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Deterrence, settlement, and litigation under adversarial versus inquisitorial systems

Author

Listed:
  • Alice Guerra

    (University of Bologna)

  • Maria Maraki

    (FDCA, University of Lausanne)

  • Baptiste Massenot

    (TBS Business School)

  • Christian Thöni

    (FDCA, University of Lausanne)

Abstract

In this paper, we compare deterrence, settlement, and litigation spending under adversarial and inquisitorial systems. We present a basic litigation model with three sequential stages—care, settlement, litigation—and we test the predictions on experimental data. In line with our theoretical expectations, we find that, compared with the adversarial system, the inquisitorial system is associated with lower litigation spending, lower rates of cases settled, and tends to strengthen deterrence.

Suggested Citation

  • Alice Guerra & Maria Maraki & Baptiste Massenot & Christian Thöni, 2023. "Deterrence, settlement, and litigation under adversarial versus inquisitorial systems," Public Choice, Springer, vol. 196(3), pages 331-356, September.
    • Handle: RePEc:kap:pubcho:v:196:y:2023:i:3:d:10.1007_s11127-022-01001-4
    DOI: 10.1007/s11127-022-01001-4
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    More about this item

    Keywords

    Procedural economy; Law & economics; Adversarial system; Inquisitorial system; Litigation; Experiment;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • K15 - Law and Economics - - Basic Areas of Law - - - Civil Law; Common Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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