Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/102156
Authors: 
Dimitrova-Grajzl, Valentina
Grajzl, Peter
Zajc, Katarina
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper 4894
Abstract: 
Despite the judiciary's central role in the capitalist market system, micro-level empirical analyses of courts in post-socialist countries are remarkably rare. This paper draws on a unique hand-collected dataset of commercial claims filed at Slovenian courts to examine the determinants of two salient adjudicatory outcomes: whether a case was resolved via trial or settlement and if the case was tried, whether the plaintiff was awarded the initial claim. Consistent with the divergent expectations theory of litigation, we find that trial-based resolution is more likely when the case is complex and less likely when parties use mediation. Addressing sample selection and endogeneity concerns, we show that defendant's legal representation, plaintiff's profitability, and, importantly, court identity are robust predictors of plaintiff victory at trial. Thus, more than two decades after the start of transition in Slovenia, the judicial system is still a source of legal inconsistency and uncertainty.
Subjects: 
courts
post-socialist countries
commercial disputes
trial
settlement
JEL: 
K40
K41
P37
D02
Document Type: 
Working Paper

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