Cost Benefit Analysis of Class Action: An Israeli Perspective

Journal of Institutional and Theoretical Economics, 2016 Forthcoming

29 Pages Posted: 14 Dec 2015

See all articles by Alon Klement

Alon Klement

Buchman Faculty of Law, Tel Aviv University

Keren Weinshall

Hebrew University of Jerusalem - Faculty of Law

Date Written: December 13, 2015

Abstract

We propose an analytical framework for evaluating the effectiveness of class actions, in which their costs are estimated against the benefits they produce in attaining three objectives: law enforcement and deterrence; access to courts; and compensation. We outline parameters for measuring the social costs and benefits relevant to these objectives and evaluate them for Israeli class actions, based on original data including all class actions filed between 2006 and 2012 (n=2,056). Findings indicate that class actions did not substantially facilitate access to courts and compensation, and that they had limited success in realizing law enforcement and deterrence.

Keywords: class actions, empirical legal studies

JEL Classification: K40, K41

Suggested Citation

Klement, Alon and Weinshall, Keren, Cost Benefit Analysis of Class Action: An Israeli Perspective (December 13, 2015). Journal of Institutional and Theoretical Economics, 2016 Forthcoming, Available at SSRN: https://ssrn.com/abstract=2702925

Alon Klement

Buchman Faculty of Law, Tel Aviv University ( email )

Tel Aviv
Israel

Keren Weinshall (Contact Author)

Hebrew University of Jerusalem - Faculty of Law ( email )

Mount Scopus
Mount Scopus, 91905
Israel

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