The economics of the European Commission's recommendation on collective redress

Research output: A Conference proceeding or a Chapter in BookChapter

Abstract

The 2013 European Commission Recommendation on Collective Redress recommended that all Member States of the European Union have national collective redress systems, and identified a number of principles relating both to judicial and out-of-court collective redress that should be observed in common across the Union. This paper explores from an economic perspective the issues or problems which the Commission’s specifically European model of collective redress seeks to overcome, and what Member States will need to address to implement it, in order to promote efficient outcomes, or social welfare in Europe. The paper thus critically examines the economic costs and benefits of using collective redress procedures to aggregate multiple individual claims relative to conducting individual suits. Collective redress raises economic welfare through scaling effects, which reduce the overall amount of private and public resources allocated to litigation, and by making small claims judicially and economically viable. However, collective redress procedures also generate various sources of information and agency costs. This article combines several models of collective redress litigation to review the main arguments in favour or against the use of collective redress procedures.
Original languageEnglish
Title of host publicationCollective redress in Europe
Subtitle of host publicationWhy and how?
EditorsEva Lein, Duncan Fairgrieve, Marta Otero Crespo, Vincent Smith
Place of PublicationLondon, UK
PublisherBritish Institute of International and Comparative Law
Pages5-30
Number of pages26
Edition1
ISBN (Print)9781905221561
Publication statusPublished - 2015

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European Commission
economics
welfare economics
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social welfare
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FREYENS, B. (2015). The economics of the European Commission's recommendation on collective redress. In E. Lein, D. Fairgrieve, M. O. Crespo, & V. Smith (Eds.), Collective redress in Europe: Why and how? (1 ed., pp. 5-30). London, UK: British Institute of International and Comparative Law.
FREYENS, Ben. / The economics of the European Commission's recommendation on collective redress. Collective redress in Europe: Why and how?. editor / Eva Lein ; Duncan Fairgrieve ; Marta Otero Crespo ; Vincent Smith. 1. ed. London, UK : British Institute of International and Comparative Law, 2015. pp. 5-30
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abstract = "The 2013 European Commission Recommendation on Collective Redress recommended that all Member States of the European Union have national collective redress systems, and identified a number of principles relating both to judicial and out-of-court collective redress that should be observed in common across the Union. This paper explores from an economic perspective the issues or problems which the Commission’s specifically European model of collective redress seeks to overcome, and what Member States will need to address to implement it, in order to promote efficient outcomes, or social welfare in Europe. The paper thus critically examines the economic costs and benefits of using collective redress procedures to aggregate multiple individual claims relative to conducting individual suits. Collective redress raises economic welfare through scaling effects, which reduce the overall amount of private and public resources allocated to litigation, and by making small claims judicially and economically viable. However, collective redress procedures also generate various sources of information and agency costs. This article combines several models of collective redress litigation to review the main arguments in favour or against the use of collective redress procedures.",
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FREYENS, B 2015, The economics of the European Commission's recommendation on collective redress. in E Lein, D Fairgrieve, MO Crespo & V Smith (eds), Collective redress in Europe: Why and how?. 1 edn, British Institute of International and Comparative Law, London, UK, pp. 5-30.

The economics of the European Commission's recommendation on collective redress. / FREYENS, Ben.

Collective redress in Europe: Why and how?. ed. / Eva Lein; Duncan Fairgrieve; Marta Otero Crespo; Vincent Smith. 1. ed. London, UK : British Institute of International and Comparative Law, 2015. p. 5-30.

Research output: A Conference proceeding or a Chapter in BookChapter

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AB - The 2013 European Commission Recommendation on Collective Redress recommended that all Member States of the European Union have national collective redress systems, and identified a number of principles relating both to judicial and out-of-court collective redress that should be observed in common across the Union. This paper explores from an economic perspective the issues or problems which the Commission’s specifically European model of collective redress seeks to overcome, and what Member States will need to address to implement it, in order to promote efficient outcomes, or social welfare in Europe. The paper thus critically examines the economic costs and benefits of using collective redress procedures to aggregate multiple individual claims relative to conducting individual suits. Collective redress raises economic welfare through scaling effects, which reduce the overall amount of private and public resources allocated to litigation, and by making small claims judicially and economically viable. However, collective redress procedures also generate various sources of information and agency costs. This article combines several models of collective redress litigation to review the main arguments in favour or against the use of collective redress procedures.

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FREYENS B. The economics of the European Commission's recommendation on collective redress. In Lein E, Fairgrieve D, Crespo MO, Smith V, editors, Collective redress in Europe: Why and how?. 1 ed. London, UK: British Institute of International and Comparative Law. 2015. p. 5-30