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Lanjouw Schankerman (2004) - Protecting Intellectual Property Rights (view source)

No change in size , 15:37, 22 June 2016

# Divergent expectation(DE)

#* each party estimates the quality of her case with error

*#* case goes to trial when one party is sufficiently optimistic about her case

# Asymmetric information(AI)

#* Probablity of the plaintiff win is private information

*#* An uninformed party makes an offer*#* Trials arise in separating equilibria, thus a win rate for the informed party should tend to 100 percent.

* They show that data strongly favors DE.

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