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Asking for information prior to settlement or trial when misrepresentation of evidence is possible

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  • Ayouni, Mehdi
  • Friehe, Tim
  • Gabuthy, Yannick

Abstract

This paper analyzes how mandated information disclosure prior to settlement negotiations influences equilibrium outcomes when the privately informed party may misrepresent its type at a cost. We establish that private information cannot be fully revealed and that a regime without information sharing may outperform a regime with information sharing according to the criteria of expected social costs and fairness considerations.

Suggested Citation

  • Ayouni, Mehdi & Friehe, Tim & Gabuthy, Yannick, 2023. "Asking for information prior to settlement or trial when misrepresentation of evidence is possible," Mathematical Social Sciences, Elsevier, vol. 121(C), pages 26-35.
    • Handle: RePEc:eee:matsoc:v:121:y:2023:i:c:p:26-35
    DOI: 10.1016/j.mathsocsci.2022.12.001
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