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Keeping Society in the Dark: On the Admissibility of Pretrial Negotiations As Evidence in Court

Paper:ewp-game/9403008
From:    
Date: 31 Mar 94 08:52 CST

Title: Keeping Society in the Dark: On the Admissibility of Pretrial Negotiations As Evidence in Court
Author: Andrew F. Daughety and Jennifer F. Reinganum
Contact: Institution: Economics; Univ. of Iowa; Iowa City, Iowa 52242; USA
EWP-references: none
Report-no: Working paper 94-06 of Economics Series at UI
Comments: Zipped using PKZIP v2.04, encoded using UUENCODE v5.15. Zipped file includes 1 file -- Admissbl.fnl (body in WP5.1, 40 pages)

Abstract:

ABSTRACT We model the settlement and litigation process, allowing for incomplete information about the level of damages (incurred by the plaintiff) on the part of both the defendant and the court, and use the model to examine the effect of making (currently inadmissible) settlement demands admissible as evidence in court should a case proceed to trial. Two conclusions emerge. First, admissibility rules have efficiency consequences: making a pretrial demand admissible would increase the expected number of cases that go to trial. Second, such rules have distributional consequences and need not benefit all parties to a controversy. As an example, in product liability cases consumers are likely to favor inadmissibility, while corporations will favor the reverse.

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