Resumen de Free choice of legal fee shifting rules?

Christian Schwab, Hin-Yue Tang, Stefan Winter

• In every country in the world parties to private litigation are subject to a predetermined fee shifting regime. While there are no institutionalized opt-out provisions so far, we demonstrate that such provisions could improve welfare. We argue that private negotiations are not a viable alternative to such opt-out provisions. We derive the conditions under which welfare improvements occur and suggest an applicable design for such an opt-out scheme.