The importance of spitefulness in the economic analysis of litigation

Abstract

The subject matter of this paper is the notion of spite ("inat" - relentless gridge and obstinacy in spite of consequences) and spiteful conduct as a special social preference. The goal is to examine the significance of 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) as well as psychology and evolutionary biology. Yet, primacy is given to the behavioral economics point of view, where spitefulness is defined as a willingness to inflict harm on others at one's own detriment and expense. In that context, the paper presents statistics on the number of civil proceedings in Serbia, together with comparative data on this matter, and discusses the implications of spiteful behavior on the number of civil proceedings. The paper sets out a conceptual framework for further empirical research on spite and spiteful conduct, and their importance in deciding whether to initiate litigation and/or choose between trial and settlement. It also examines the preferences of the Serbian citizens on this issue in order to address the following questions: do Serbian citizens prefer to litigate, and what is the role of spite in that context?

Keywords

• spite
• spiteful conduct
• litigation
• settlement
• economic analysis