Estimating the Effects of the English Rule on Litigation Outcomes

• 成果类型: Article
• 署名作者: Helland, Eric; Yoon, Jungmo
• 署名单位: Claremont Colleges; Claremont Graduate University; Claremont McKenna College; Hanyang University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00653
• 发表日期: 2017-10
• 页码: 678-682
• 关键词: partially identified parameters; confidence-intervals

摘要

The English rule prescribes that the loser of a lawsuit pays the winner's litigation costs. Previous research on the English rule finds that plaintiffs win more often at trial, receive higher awards, and receive larger settlements. Theory predicts that the English rule discourages settlement by raising the threshold payment necessary for settlement. In this paper, we reexamine the Florida experiment with the English rule by placing bounds on the selection effects. We find that the mean and median settlement amount increases. Collectively these findings are consistent with the predictions of the simplest models of the English rule's impact.