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Reducing Demand for Litigation in Consumer Disputes—a Randomized Field Experiment with Social Information

Author:
Jespersen, AndreasMaaløe
Source:
Journal of consumer policy 2018 v.41 no.1 pp. 21-32
ISSN:
0168-7034
Subject:
business enterprises, field experimentation, litigation, Denmark
Abstract:
It has long been argued that alternative dispute resolution is superior to traditional court litigation. The paper reviews traditional and behavioural arguments and findings for why litigation rates remain high. The paper then reports on a natural field experiment designed to test how to improve disputes between consumers and businesses in Denmark resolution by including social information into the dispute process. The experiment demonstrates that social information significantly affects litigants’ need for litigation, but that the effect on settlement rates is non-significant. The results are discussed along with suggestions for possible future research into improving the willingness to cooperate in consumer disputes.
Agid:
5916508