Private Law Theory

ABSTRACT
In an experimental setting, we analyze deterrence, settlement, and litigation spending under an adversarial and an inquisitorial system. We present a basic litigation model with three sequential stages – care, settlement, and litigation – and we test the predictions using experimental data. In line with theory, the inquisitorial system is associated with less rent-seeking in court and better deterrence than the adversarial system, but it is also characterized by a narrower bargaining range, which hinders settlement.

Guerra, Alice and Maraki, Maria and Massenot, Baptiste and Thöni, Christian, Deterrence, Settlement, and Litigation Under Adversarial Versus Inquisitorial Systems (April 30, 2021).

First posted 2022-03-02 15:00:47