
The Reduced Form of Litigation Models and the Plaintiff's Win Rate
Start Page
125
Abstract
This paper introduces the reduced-form approach to litigation selection models. A reduced form comprises a joint distribution of parties’ beliefs about the probability that a plaintiff would win in the event a dispute were litigated; a conditional win rate function giving the actual probability of a plaintiff’s win in the event of litigation, given the parties’ subjective beliefs; and a litigation rule that provides the probability that a dispute will be litigated given the two parties’ beliefs. Models with very different-looking structures can be understood in common reduced-form terms. The reduced form can be used to prove interesting and perhaps surprising results related to the plaintiff’s win rate in litigated cases.
Recommended Citation
Gelbach, Jonah B.
(2018)
"The Reduced Form of Litigation Models and the Plaintiff's Win Rate,"
Journal of Law and Economics: Vol. 61:
No.
1, Article 5.
Available at:
https://chicagounbound.uchicago.edu/jle/vol61/iss1/5