Fee-Shifting Rules in Litigation with Contingency Fees

摘要: This paper theoretically compares the British and American fee-shifting rules in their influences on behavior of litigants outcomes litigation. We build up a comprehensive litigation model with asymmetric information agency costs, solve for equilibria under both rules. thereby compare equilibrium settlement amounts rates, expenditures incurred trials, as well plaintiff's chances winning incentive to sue. The theoretical results are broadly consistent existing empirical evidence.