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The Value of Truth and the Optimal Standard of Proof in Legal Disputes

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Author Info
Davis, Michael L
Abstract

This article models the fact-finding process as one in which a defendant is accused of violating some legal standard (e.g., exceeding the speed limit). The fact finder cannot observe the actual behavior but observes some variable that is a noisy signal of the truth (e.g., the reading from a radar detector). From this signal it is possible to calculate the probability of guilt. The standard of proof (the minimal probability necessary to convict) that minimizes the expected cost of error is seen as a trade-off between the expected cost of false acquittals and convictions. A simple example shows that a clearer signal of truth (a more reliable radar detector) may not always lower error costs, because the utility of a fact-finding method depends also on the population of defendants and the standard of proof. These results clarify the source of disagreements over different fact-finding procedures. Copyright 1994 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Journal of Law, Economics and Organization.

Volume (Year): 10 (1994)
Issue (Month): 2 (October)
Pages: 343-59
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Handle: RePEc:oup:jleorg:v:10:y:1994:i:2:p:343-59

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  1. Dominique Demougin & Claude Fluet, 2000. "Prepondeance of the Evidence: Tort Rules and the Efficient Standard of Proof," Cahiers de recherche CREFE / CREFE Working Papers 120, CREFE, Université du Québec à Montréal. [Downloadable!]
  2. Christoph Engel, 2008. "Preponderance of the Evidence versus Intime Conviction. A Behavioural Perspective on a Conflict between American and Continental European Law," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2008_33, Max Planck Institute for Research on Collective Goods. [Downloadable!]
  3. Dominique Demougin & Claude Fluet, 2004. "Deterrence vs Judicial Error: a Comparative View of Standards of Proof," Cahiers de recherche 0418, CIRPEE. [Downloadable!]
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  4. Dominique Demougin & Claude Fluet, 2002. "Preponderance of Evidence," Cahiers de recherche CREFE / CREFE Working Papers 150, CREFE, Université du Québec à Montréal. [Downloadable!]
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  5. Garoupa, Nuno & Ogus, Anthony, 2003. "A Strategic Interpretation of Legal Transplants," CEPR Discussion Papers 4123, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  6. Mehmet Bac & Parimal Kanti Bag, 2000. "Law Enforcement Costs and Legal Presumptions," Econometric Society World Congress 2000 Contributed Papers 0194, Econometric Society. [Downloadable!]
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