Seminar paper from the year 2007 in the subject Law - Miscellaneous, grade: 1, 0, University of Augsburg, course: Seminar zur ökonomischen Analyse des Rechts, 29 entries in the bibliography, language: English, abstract: This paper discusses settlements in German civil proceedings. It begins by introducing some empiric data regarding the general behaviour in Germany in which to solve legal disputes. Then, it provides an overview of legal possibilities and requirements for settlement and/or not to go to trial, and briefly compares the German approach with those of other countries. The essay's purpose, however, is to look at the economic efficiency of settlements. Using an economic analysis of law and the principal tool now being employed in this area - the game theory -, this paper gives economic reasons and conditions for individuals to determine whether and how to settle disputes. Additionally, in order to explain the observed behaviour, the paper takes a detailed look at Germany and the average German attitude on how to solve legal disputes. For this reason, it discusses abstract reasons for the observed behaviour and other than the theoretical ones.