Volume 48 (2014) / Issue 4
Building on the tools of the economic analysis of law, we will try to solve the riddle of precedents in the World Trade Organization (WTO). In the first part of the article, it will be shown how the traditional economic models used to advocate the efficiency of stare decisis do not capture its distinguishing traits due to oversimplification. Second, it will be argued that a de jure regime of stare decisis is ill suited to the peculiar nature of WTO's litigation. More precisely, the action of interest groups and the intricacies characterizing the legislative process of the WTO create incentives that are drastically different from private litigation.
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