THE IMPORTANCE OF SPITEFULNESS IN THE ECONOMIC ANALYSIS OF LITIGATION
Keywords:
spite, spiteful conduct, litigation, settlement, economic analysis
Abstract
The subject of this paper is spitefulness, as a notion and special social preference, and spiteful behavior. The goal is to examine the significance of the spitefulness and its implications in analyzing the litigation and the choice between trial and settlement. In this paper, spitefulness is viewed from the perspective of different economic science' disciplines (behavioral economics, experimental economics, neoclassical economic analysis of law), but also psychology and evolutionary biology. Yet, the primacy is given to behavioral economics point of view, from which the spitefulness is defined as a willingness to inflict harm on others at one's costs. Also, the paper presents statistics on the number of civil proceedings in Serbia, together with comparative data, and discusses the implications of spitefulness and spiteful behavior on the number of civil proceedings. The paper sets out a conceptual framework for further empirical research on spite and spiteful behavior and their importance in deciding whether to initiate litigation and/or choose between trial and settlement to answer the question of whether Serbian citizens prefer to litigate and what is the role of spite in that.
References
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Andreoni, J. Miller, Ј. (2002). Giving According to GARP: An Experimental Test of the Rationality of Altruism. Econometrica. 70(2). 737-753.
Bolton, G. Ockenfels, A. (2000). A Theory of Equity, Reciprocity and Competition. The American Economic Review. 90(1). 166-193.
Cooter, R. Marks, S. Mnookin, R. (1982). Bargaining in the Shadow of the Law: A Testable Model of Strategic Behavior. The Journal of Legal Studies. 11(2). 225-251.
Cross, F. (2000). In Praise of Irrational Plaintiffs. Cornell Law Review. 86(1). 1-32.
Cullis, J. Jones, P. Soliman, A. (2012). ‘Spite effects’ in Тax Еvasion Еxperiments. Journal of Socio-Economics. 41(4). 418-423.
Dufwenberg, M. Kirchsteiger, G. (2004). A Theory of Sequential Reciprocity. Games and Economic Behavior. 47(2). 268-298.
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Falk, A. Fehr, E. Fischbacher, U. (2005). Driving Forces Behind Informal Sanctions. Econometrica. 73(6). 2017-2030.
Falk, A. Fehr, E. Fischbacher, U. (2008). Testing Тheories of Fairness – Intentions Matter. Games and Economic Behavior. 62(1). 287-303.
Falk, А. Fischbacher, U. (2005). Modeling Strong Reciprocity. In Gintis, H. Bowles, S. Boyd, R. and Fehr, E. (Ed.). Moral Sentiments and Material Interests: The Foundations of Cooperation in Economic Life. Cambridge: The MIT Press. 193-214.
Fehr, E. Fischbacher, U. (2002). Why social preferences matter: The impact of non-selfish motives on competition, cooperation and incentives. The Economic Journal. 112(478). C1-C33.
Fehr, E. Schmidt, K. (1999). A theory of Fairness, Competition, and Cooperation. The Quarterly Journal of Economics. 114(3). 817-868.
Fehr, E. Schmidt, K. (2006). The Economics of Fairness, Reciprocity and Altruism – Experimental Evidence and New Theories. In Kolm, S-K. Ythier, J.M. (Ed.). Handbook of the Economics of Giving, Altruism and Reciprocity. Elsevier. 1. 1-886.
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Gardner, A. West, S.A. (2004). Spite and the Scale of Competition. Journal of Evolutionary Biology. 17(6). 1196-1203.
Gintis, H. (2000). Strong Reciprocity and Human Sociality. Journal of Theoretical Biology. 206(2). 169-179.
Guth, W. van Damme, E. (1998). Information, Strategic Behavior, and Fairness in Ultimatum Bargaining: An Experimental Study. Journal of Mathematical Psychology. 42(2-3). 227-247.
Hamburger, H. (1979). Games as Models of Social Phenomena. San Francisco: W H Freeman & Co.
Hamilton, W.D. (1970). Selfish and Spiteful Behaviour in an Evolutionary Model. Nature. 228. 1218-1220.
Harrison, J.L. (2018). Spite: Legal and Social Implications. Lewis & Clark Law Review. 22(3). 991-1026.
http://www.politika.rs/sr/clanak/86209/Inat-kao-srpski-brend
https://dictionary.cambridge.org/dictionary/english/spite
https://www.the-scientist.com/research/spite-evolution-finally-gets-nasty-49213
Jolls, C. Sunstein, C. Thaler, R. (1998). A Behavioral Approach to Law and Economics. Stanford Law Review. 50. 1471-1550.
Jovanović, B. (2008a). Psihologija inata. Polja – časopis za književnost i teoriju. 2008(454). 116-122.
Kirchsteiger, G. (1994). The Role of Envy in Ultimatum Games. Journal of Economic Behavior and Organization. 25(1994). 373-389.
Lehmann, L. Bargum, K. Reuter, M. (2006). An Evolutionary Analysis of the Relationship Between Spite and Altruism. Journal of Evolutionary Biology. 19(5). 1507-1516.
Levine, D. (1998). Modeling Altruism and Spitefulness in Experiments. Review of Economic Dynamics. 1(3). 593-622.
Marcus, D.K. Zeigler-Hill, V. Mercer, S.H. Norris, A.L. (2014). The Psychology of Spite and the Measurement of Spitefulness. Psychological Assessment. 26(2). 563-574.
Мarcus, D.K. Norris, A.L. (2016). Spite. In Zeigler-Hill, V. Marcus, D.K. (Ed.). The Dark Side of Personality. Washington, DC: American Psychological Association.
Offerman, T. (2002). Hurting Hurts More than Helping Helps. European Economic Review. 46(8).1423-1437.
Orr, H.A. (2009). Fitness and Its Role in Evolutionary Genetics. Nature Reviews Genetics. 10. 531-539.
Paulhus, D.L, Williams, K.M. (2002). The Dark Triad of Personality: Narcissism, Machiavellianism, and Psychopathy. Journal of Research in Personality. 36(6). 556-563.
Pillutla, M. Murnighan, K. (1996). Unfairness, Anger, and Spite: Emotional Rejections of Ultimatum Offers. Organizational Behavior and Human Decision Processes. 68(3). 208-224.
Rabin, M. (1993). Incorporating Fairness into Game Theory and Economics. American Economic Review. 83(5). 1281-1302.
Ramseyer, J.M. Rasmusen, E.B. (2013). Are Americans More Litigious? Some Quantitative Evidence. In Buckley, F.H. (Ed.). The American Illness. Essays on the Rule of Law. New Haven and London: Yale University Press.
Roth, A.E. Prasnikar, V. Okuno-Fujiwara, M. Zamir, M.S. (1991). Bargaining and Market Behavior in Jerusalem, Ljubljana, Pittsburgh, and Tokyo: An Experimental Study. The American Economic Review. 81(5). 1068-1095.
Shabad, P. (2000). Giving the devil his due: Spite and the struggle for individual dignity. Psychoanalytic Psychology. 17. 690-705.
Trebješanin, Ž. (2001). Rečnik psihologije. Beograd: Stubovi kulture.
West, S. Griffin, S. Gardner, A. (2007). Social Semantics: Altruism, Cooperation, Mutualism, Strong Reciprocity and Group Selection. Journal of Evolutionary Biology. 20(2). 415-432.
Wilson, E.O. (1975). Sociobiology: The New Synthesis. Cambridge, MA: Harvard Press.
Zamir, Е. Teichman, D. (2008). Behavioral Law and Economics. New York: Oxford University Press.
Žunić Pavlović, V. Kovačević Lepojević, M. (2011). Prevalencija i razvoj poremećaja ponašanja u detinjstvu. Specijalna edukacija i rehabilitacija (Beograd). 10(4). 725-742.
Беговић, Б. Лабус, М. Јовановић, А. (2013). Економија за правнике. Београд: Правни факултет Универзитет у Београду.
Годишњи извештаји Врховног касационог суда о раду судова, https://www.vk.sud.rs/sr-lat/godi%C5%A1nji-izve%C5%A1taj-o-radu-sudova
Јовановић, Б. (2008б). Пркос и инат: етнопсихолошке студије. Београд: Завод за уџбенике.
Клајн, И. Шипка, М. (2008). Велики речник страних речи и израза, Нови Сад: Прометеј.
Рот, Н. (2010). Основи социјалне психологије. Београд: Завод за уџбенике.
Andreoni, J. (1989). Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence. Journal of Political Economy. 97(6). 1447-1458.
Andreoni, J. Miller, Ј. (2002). Giving According to GARP: An Experimental Test of the Rationality of Altruism. Econometrica. 70(2). 737-753.
Bolton, G. Ockenfels, A. (2000). A Theory of Equity, Reciprocity and Competition. The American Economic Review. 90(1). 166-193.
Cooter, R. Marks, S. Mnookin, R. (1982). Bargaining in the Shadow of the Law: A Testable Model of Strategic Behavior. The Journal of Legal Studies. 11(2). 225-251.
Cross, F. (2000). In Praise of Irrational Plaintiffs. Cornell Law Review. 86(1). 1-32.
Cullis, J. Jones, P. Soliman, A. (2012). ‘Spite effects’ in Тax Еvasion Еxperiments. Journal of Socio-Economics. 41(4). 418-423.
Dufwenberg, M. Kirchsteiger, G. (2004). A Theory of Sequential Reciprocity. Games and Economic Behavior. 47(2). 268-298.
European Commission for the Efficiency of Justice (CEPEJ). (2018). European Judicial Systems Efficiency and Quality of Justice. Cepej Studies No. 26.
Falk, A. Fehr, E. Fischbacher, U. (2005). Driving Forces Behind Informal Sanctions. Econometrica. 73(6). 2017-2030.
Falk, A. Fehr, E. Fischbacher, U. (2008). Testing Тheories of Fairness – Intentions Matter. Games and Economic Behavior. 62(1). 287-303.
Falk, А. Fischbacher, U. (2005). Modeling Strong Reciprocity. In Gintis, H. Bowles, S. Boyd, R. and Fehr, E. (Ed.). Moral Sentiments and Material Interests: The Foundations of Cooperation in Economic Life. Cambridge: The MIT Press. 193-214.
Fehr, E. Fischbacher, U. (2002). Why social preferences matter: The impact of non-selfish motives on competition, cooperation and incentives. The Economic Journal. 112(478). C1-C33.
Fehr, E. Schmidt, K. (1999). A theory of Fairness, Competition, and Cooperation. The Quarterly Journal of Economics. 114(3). 817-868.
Fehr, E. Schmidt, K. (2006). The Economics of Fairness, Reciprocity and Altruism – Experimental Evidence and New Theories. In Kolm, S-K. Ythier, J.M. (Ed.). Handbook of the Economics of Giving, Altruism and Reciprocity. Elsevier. 1. 1-886.
Fehr, Е. Fischbacher, U. (2005). The Economics of Strong Reciprocity. In Gintis, H. Bowles, S. Boyd, R. and Fehr, E. (Ed.). Moral Sentiments and Material Interests: The Foundations of Cooperation in Economic Life. Cambridge: The MIT Press. 151-192.
Gardner, A. West, S.A. (2004). Spite and the Scale of Competition. Journal of Evolutionary Biology. 17(6). 1196-1203.
Gintis, H. (2000). Strong Reciprocity and Human Sociality. Journal of Theoretical Biology. 206(2). 169-179.
Guth, W. van Damme, E. (1998). Information, Strategic Behavior, and Fairness in Ultimatum Bargaining: An Experimental Study. Journal of Mathematical Psychology. 42(2-3). 227-247.
Hamburger, H. (1979). Games as Models of Social Phenomena. San Francisco: W H Freeman & Co.
Hamilton, W.D. (1970). Selfish and Spiteful Behaviour in an Evolutionary Model. Nature. 228. 1218-1220.
Harrison, J.L. (2018). Spite: Legal and Social Implications. Lewis & Clark Law Review. 22(3). 991-1026.
http://www.politika.rs/sr/clanak/86209/Inat-kao-srpski-brend
https://dictionary.cambridge.org/dictionary/english/spite
https://www.the-scientist.com/research/spite-evolution-finally-gets-nasty-49213
Jolls, C. Sunstein, C. Thaler, R. (1998). A Behavioral Approach to Law and Economics. Stanford Law Review. 50. 1471-1550.
Jovanović, B. (2008a). Psihologija inata. Polja – časopis za književnost i teoriju. 2008(454). 116-122.
Kirchsteiger, G. (1994). The Role of Envy in Ultimatum Games. Journal of Economic Behavior and Organization. 25(1994). 373-389.
Lehmann, L. Bargum, K. Reuter, M. (2006). An Evolutionary Analysis of the Relationship Between Spite and Altruism. Journal of Evolutionary Biology. 19(5). 1507-1516.
Levine, D. (1998). Modeling Altruism and Spitefulness in Experiments. Review of Economic Dynamics. 1(3). 593-622.
Marcus, D.K. Zeigler-Hill, V. Mercer, S.H. Norris, A.L. (2014). The Psychology of Spite and the Measurement of Spitefulness. Psychological Assessment. 26(2). 563-574.
Мarcus, D.K. Norris, A.L. (2016). Spite. In Zeigler-Hill, V. Marcus, D.K. (Ed.). The Dark Side of Personality. Washington, DC: American Psychological Association.
Offerman, T. (2002). Hurting Hurts More than Helping Helps. European Economic Review. 46(8).1423-1437.
Orr, H.A. (2009). Fitness and Its Role in Evolutionary Genetics. Nature Reviews Genetics. 10. 531-539.
Paulhus, D.L, Williams, K.M. (2002). The Dark Triad of Personality: Narcissism, Machiavellianism, and Psychopathy. Journal of Research in Personality. 36(6). 556-563.
Pillutla, M. Murnighan, K. (1996). Unfairness, Anger, and Spite: Emotional Rejections of Ultimatum Offers. Organizational Behavior and Human Decision Processes. 68(3). 208-224.
Rabin, M. (1993). Incorporating Fairness into Game Theory and Economics. American Economic Review. 83(5). 1281-1302.
Ramseyer, J.M. Rasmusen, E.B. (2013). Are Americans More Litigious? Some Quantitative Evidence. In Buckley, F.H. (Ed.). The American Illness. Essays on the Rule of Law. New Haven and London: Yale University Press.
Roth, A.E. Prasnikar, V. Okuno-Fujiwara, M. Zamir, M.S. (1991). Bargaining and Market Behavior in Jerusalem, Ljubljana, Pittsburgh, and Tokyo: An Experimental Study. The American Economic Review. 81(5). 1068-1095.
Shabad, P. (2000). Giving the devil his due: Spite and the struggle for individual dignity. Psychoanalytic Psychology. 17. 690-705.
Trebješanin, Ž. (2001). Rečnik psihologije. Beograd: Stubovi kulture.
West, S. Griffin, S. Gardner, A. (2007). Social Semantics: Altruism, Cooperation, Mutualism, Strong Reciprocity and Group Selection. Journal of Evolutionary Biology. 20(2). 415-432.
Wilson, E.O. (1975). Sociobiology: The New Synthesis. Cambridge, MA: Harvard Press.
Zamir, Е. Teichman, D. (2008). Behavioral Law and Economics. New York: Oxford University Press.
Žunić Pavlović, V. Kovačević Lepojević, M. (2011). Prevalencija i razvoj poremećaja ponašanja u detinjstvu. Specijalna edukacija i rehabilitacija (Beograd). 10(4). 725-742.
Беговић, Б. Лабус, М. Јовановић, А. (2013). Економија за правнике. Београд: Правни факултет Универзитет у Београду.
Годишњи извештаји Врховног касационог суда о раду судова, https://www.vk.sud.rs/sr-lat/godi%C5%A1nji-izve%C5%A1taj-o-radu-sudova
Јовановић, Б. (2008б). Пркос и инат: етнопсихолошке студије. Београд: Завод за уџбенике.
Клајн, И. Шипка, М. (2008). Велики речник страних речи и израза, Нови Сад: Прометеј.
Рот, Н. (2010). Основи социјалне психологије. Београд: Завод за уџбенике.
Published
2020/08/25
Section
Review Paper