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FORIS contracts: Litigation Cost Shifting and Contingent Fees in Germany

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Figure

Figure 1: Event tree of Game 1
Figure 2: Outcomes of Game 1
Figure 3: Event tree of game 2 P, D     > Z Z Z Z Z~ P   >Z Z Z Z Z~contractnotsettlementnottrialnot [0, 0, 0][(1 − µ)qpY, −qD(Y + G), µq P Y − (1 − q P )G][(1 − µ)SF, −SF, µSF]>ZZZZZ~F, P Game 1 or, equivalently, q P > Y + G
Figure 4: Outcomes of Game 2
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