If most litigation is a costly form of redistribution, then public policy should discourage it for the sake of economic efficiency. Compare the efficiency of the following restrictions on the market for legal services:

(a) low damages awarded as compensation for injuries;
(b) high fees charged by the court for the filling of a legal complaint;
(c) lawyer's feet set by the state at ahigh level

A) Low damages awarded as compensation for injuries: in checkmating the costly form of litigation,this is of great option that should be look Into. Low damages award will reduce the rate of currency inflation,as the value of money will be seen from low litigations awarded.

B) High fees charged by the Court's for filling of legal compliant : This right here is a tactics used by the court in reducing the amount of charges filed. It is expected that when an individual thinks about the charges he / she might settle out of the court with the offender and in the long run a low damage as compensation will be agreed on .Thereby favouring option A above.

C) Lawyer fees set by the state on a high level: In discouraging filing of legal compliant and favouring of out of court settlement in favouring economic efficiency. Charges on getting a lawyer becomes expensive ,there by favouring out of court settlement which is usually cheaper with little legal litigation.