The Economy of Litigation (original) (raw)
Ideally, the law acts like an algoritm producing a fair and just outcome. If this is not respected, a party who feels disadvantaged can submit the case to court. The court will follow the rules of procedural law and apply material law on the case, and produce a fair outcome. Unfortunately, being right is in many cases not the same as getting right, and procedures can be manipulated. Economic considerations are key in these manipulations. This paper seeks to find which are the economic factors behind litigation, and how can they be applied by parties in their favour.