The Evolution of a Legal Rule
Use the link below to share a full-text version of this article with your friends and colleagues. Learn more. In contrast to existing articles, the flow of cases heard by the court is affected by the court's prior decisions. In equilibrium, the law settles endogenously, because the incentives to make legally controversial choices disappear as the law evolves.
Settled law exhibits residual uncertainty and ambiguity, and potentially implements inefficient outcomes.
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