The Role of the Settlement Stage in Environmental Conflicts, Considering for Endogenous Timing

Chassé (2019) only considered the litigation stage in environmental conflicts, neglecting the settlement stage. Chassé (2019) found that considering the endogenous expenditures(efforts) by the parties involved in environmental conflicts during the litigation stage, endogeneity increases the effort level of the parties. This article extends Chassé (2019)’s research by analyzing environmental conflicts that include both settlement and litigation stages. The results show that endogenous timing of litigants’ efforts decreases the transaction costs for settlement. Herein, the endogeneity may be a good assumption for settlement of litigation.