Assume that both parties to a legal dispute are averse to the risk of losing at trial.

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Assume that both parties to a legal dispute are averse to the risk of losing at trial. Would risk-averse parties be more inclined to settle out of court under a rule of “each pays his own” or “loser pays all”?

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Law and economics

ISBN: 978-0132540650

6th Edition

Authors: Robert cooter, Thomas ulen

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Question Posted: Aug 10, 2012 03:41 AM

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Assume that both parties to a legal dispute are averse to the risk of losing at trial.

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Theres a great deal of controversy about this matter Our intuition is tha...View the full answer

Law and economics

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