Open AccessNote—The Managerial Economics of Civil Litigation: A Note
Author(s) -
Kofi O. Nti
Publication year - 1986
Publication title -
management science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.954
H-Index - 255
eISSN - 1526-5501
pISSN - 0025-1909
DOI - 10.1287/mnsc.32.12.1650
Subject(s) - fraction (chemistry) , economics , plaintiff , constant (computer programming) , actuarial science , civil litigation , process (computing) , mathematical economics , microeconomics , econometrics , law , political science , computer science , chemistry , organic chemistry , programming language , operating system
In his paper, "The Managerial Economics of Civil Litigation," Levy (Levy, F. K. 1985. The managerial economics of civil litigation. Management Sci. 31 (March) 323--342.) develops a model to determine the optimal expenditures and maximal budgets for a plaintiff and a defendant in a civil suit. He uses a learning process to relate each litigant's probability of success to his level of expenditure. The specific learning process used is a difference equation where the rate of enhancement of probability is a constant fraction of the maximum possible gain. Levy's analysis would have been simpler if he had formulated that learning process as a differential equation.