Abstract Financial misconduct has come into the spotlight in recent years, causing market regulators to increase reach and severity of interventions. We show that at times economic benefits illicit financial activity outweigh costs litigation. illustrate our argument with data from US Securities Exchanges Commission a case investment misconduct. From neoclassical paradigm, which follows utilita...

T he cost of producing electronic documents in a civil lawsuit has become a policy concern in recent years. Pretrial electronic discovery, or e-discovery, consists of essentially three activities: (1) collecting potential sources of information in response to an opposing party’s demand, (2) processing that information to reduce its volume and organize it for review, and (3) reviewing processed ...

Recent examples of patent litigation show the evidence of firms strategic patent use. Thus forecasting patent litigation becomes a greater priority. Patent citations have been prevalent in its usage in analyzing business environment as diverse patent indicators or a tool to predict patent litigation. However, most previous research has considered only direct patent citations. In order to overco...

A tidal wave of high drug prices has recently crashed across the U.S. economy. One of the primary culprits has been the increase in agreements by which brand-name drug manufacturers and generic firms have settled patent litigation. The framework for such agreements has been the Hatch-Waxman Act, which Congress enacted in 1984. One of the Act's goals was to provide incentives for generics to cha...

Litigation seems to be a Pareto-inefficient outcome of pretrial bargaining; however, this paper shows that litigation can be the outcome of rational behavior by a litigant and her attorney. If the attorney has more information than his client concerning the characteristics of the lawsuit, the client can use litigation as a way of extracting information. I show that, counterintuitively, litigati...

The current system of resolving allegations of medical malpractice neither reliably compensates injured patients nor reliably deters negligence on the part of providers. Recently, a few hospitals have begun experimenting with a change from a policy of categorically denying fault and refusing payment to a policy of routinely and fully disclosing all unexpected adverse events to patients, even ad...

The protection that innovators obtain from patenting their inventions crucially depends on their incentives and ability to defend them from infringers. We study how the financing of legal costs can alter the incentives to litigate in defense of the patent and, thus, the prospects of infringement and the effective protection of the innovation. We compare the resort to a financier once the infrin...