Repeated Interaction, Deep Pockets, and Litigation Spending
نویسنده
چکیده
Decisions on litigation spending can be viewed as constituting an iterated nonzero sum game, and thus as conducive to cooperation aimed at reducing spending. At the same time, though, litigants may engage in aggressive spending for various reasons, including a belief that they can outsmart the other party. This article uses a litigation simulation to consider how litigation spending is affected by whether or not the parties engage in repeated interaction and whether or not the defendant is a corporation or an invidividual. We discuss the implications of the results for discovery policy, the admissibility of evidence of insurance, and the issue of whether lawyers tend to increase or moderate litigation spending levels. REPEATED INTERACTION, DEEP POCKETS, AND LITIGATION SPENDING
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