9410007 BEBCHUK This research includes four projects in the economic analysis of law. Two projects will be in the area of corporate law and corporate bankruptcy, and two projects will be in the area of litigation and settlement. In the area of corporate law and corporate bankruptcy, the Principal Investigator will first analyze transactions in which controlling blocks in corporations are purchased. The second project will examine the consequences of providing secured creditors with full priority in bankruptcy. In the litigation and settlement area, one project will consider suits that are known to be made solely to extract a settlement offer. In the second project, the Principal Investigator will examine the strategic effects that lawyer-client fee arrangements can have in bargaining over settlement. To analyze these issues, the Principal Investigator will develop econometric models to test the formal assumptions underlying each problem.
