CMS Disputes Conference 2016
‘Litigation Settlement Delay: A Game Theory Perspective’ Robert Parnell, SettlementAnalytics
“Continuing the theme of unintended consequences, Robert Parnell of SettlementAnalytics shared insights from legal-economic research on what factors promote or discourage early settlement. Measures intended to encourage early settlement that have actually been found to backfire in practice include higher prejudgment interest and, surprisingly, increased use of ADR.
“Illustrating that lawyers and clients might do well to account for a wider range of factors than the traditional settlement zone analysis permits, Robert Parnell used a game theory model of dispute to show how relative cost of capital differences between the parties can be a major factor in the likelihood and timing of settlement. Other important influences include the cost structure of the dispute, the size of the claim, the degree of informational asymmetry between the parties, the imposition of a court imposed schedule, and the establishment of a trial date.” — CMS.Law