Endogenous cases and the evolution of the common law

• 成果类型: Article
• 署名作者: Parameswaran, Giri
• 署名单位: Haverford College
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12252
• 发表日期: 2018
• 页码: 791-818
• 关键词: LITIGATION; precedent; efficient; liability; doctrine; rules

摘要

I develop a dynamic model of judge-made law in which the ideal legal rule is unknown but can be learned. In contrast to existing articles, the flow of cases heard by the court is affected by the court's prior decisions. The model highlights the significance of this feedback in explaining when and why the court will write broader or narrower opinions, and the long-run properties of common law. In equilibrium, the law settles endogenously, because the incentives to make legally controversial choices disappear as the law evolves. Settled law exhibits residual uncertainty and ambiguity, and potentially implements inefficient outcomes.