| here is an ongoing debate about whether market failure is best dealt with using centralized regulatory systems enforced by public agents or by decentralized systems of tort liability enforced by individuals. I advance the debate by looking at the behavior of participants in a conflict situation. This study joins the recent body of work on the economic analysis of legal disputes, and seeks to enhance our understanding of the variables that influence the outcome of litigation. This thesis consists of three essays.;The first essay organizes and summarizes the theoretical findings of the existing literature on the economics of legal disputes. The bulk of this essay is a detailed presentation and discussion of the more important papers in this area. This review provides a descriptive account of the main contributions of game-theoretic analyses of legal disputes as well as an understanding of the logic behind the models in this literature.;The second essay examines the validity of commonly accepted hypotheses guiding the debate over the presentation of statistical evidence in the courtroom, and the efficacy of the trial system as a truth-seeking enterprise. We live in a highly technological society, which naturally means that disputes among members of society are likely to include many scientific issues. In fact, much legal evidence in civil cases comes in the form of statistical information and quantitative assessments. The way these issues are handled in the legal arena are likely to impact not only the outcome of an individual case, but may also have repercussions for society generally. The decisions of a court often bind not only the parties, but set standards of conduct for all of us. Consequently, understanding the way experts hired by opposing litigants report statistical evidence to the courts, and the way in which judges and jurors evaluate expert testimony, is important not only to effective dispute resolution but also to proper decision making by society as a whole.;The third and final essay evaluates the proposed national settlement amount in an actual civil case--ongoing tobacco litigation. According to the proposed national settlement announced by state Attorneys General and the tobacco industry on June 20, 1997, cigarette manufactures will pay... |
