how can forcing a losing party to pay more for paralegals reduce the cost of litigation?

Answer 1

Because if attorneys can be reimbursed for the work done by paralegals, more work will be assigned to them, rather than higher-cost associates. E.g. instead of an attorney spending, 10 hours at $200 ($2,000), the attorney might spend 6 hours ($1,200), with the paralegal spending 5 hours at $100 ($500), for a total of $1,700, or just 85% of the cost.

Answer 2

Well a paralegal costs less than an Attorney at Law.