Suits with Negative Expected Value
The New Palgrave Dictionary of Economics and the Law, Peter Newman, ed., Vol. 3, pp. 551-554, Palgrave MacMillan, 1998
12 Pages Posted: 24 Mar 2004 Last revised: 8 May 2009
Date Written: 1998
Abstract
This essay focuses on negative-expected-value suits (NEV suits) -- suits in which the plaintiff would obtain a negative expected return from pursuing the suit all the way to judgment. The essay surveys the existing theories as to why, and when, plaintiffs with NEV suits can extract a positive settlement amount.
Keywords: Litigation, settlement, frivolous suits, negative expected value suits.
JEL Classification: K19, K41
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
A New Theory Concerning the Credibility and Success of Threats to Sue
-
By Lucian A. Bebchuk and Alon Klement
-
Threats to Sue and Cost Divisibility Under Asymmetric Information
By Alon Klement
-
The Unexpected Value of Litigation
By Joseph Grundfest and Peter H. Huang
-
Civil Litigation with Mandatory Discovery and Voluntary Transmission of Private Information
By Amy Farmer and Paul Pecorino
-
A Solution to the Problem of Nuisance Suits: The Option to Have the Court Bar Settlement
By David Rosenberg and Steven Shavell
-
Pretrial Signaling with Negative Expected Value Suits
By Amy Farmer and Paul Pecorino