In trials witnesses often slant their testimony to advance their interests.To obtain truthful testimony, courts rely on perjury rules. We show that perjury rules are not truth-revealing and we derive a truth-revealing mechanism for the same set of restrictions under which perjury rules operate. If the judge uses a truth-revealing mechanism, he will get less testimony than under perjury because the defendant will not present a witness with unfavorable news; however, testimony is of higher quality. We show that a court striving for precision prefers truth-revelation to perjury. If the court is rational in the Bayesian sense, chances for the defendant to prevail are the same under perjury and truth-revelation from an ex ante point of view. Truth-revelation thus dominates perjury even when the lower quantity of testimony is taken into account.
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Paper provided by Universitaet Bern, Departement Volkswirtschaft in its series Diskussionsschriften with number
dp0103.
Find related papers by JEL classification: D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
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