In Litigation: How Far do the "Haves" Come Out Ahead?

Abstract

This paper studies the consequences of asymmetric litigation costs. Under three differ- ent protocols: static legal process, dynamic legal process with exogenous sequencing and dynamic legal process with endogenous sequencing, solutions are obtained for the litigation efforts and the expected value of lawsuits on each side. Outcomes are evaluated in terms of two normative criteria: achieving `justice' and minimizing aggregate litigation cost. The theory implies that a moderate degree of asymmetry may improve access to justice. The dynamics of legal process may accentuate or diminish the effect of asymmetry. The en- dogenous sequencing protocol minimizes cost and may improve access to justice.access to justice;endogenous sequencing;dynamics of litigation process;re- source dissipation