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Accuracy versus Falsification Costs: The optimal Amount of Evidence under different Procedures

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  • Winand Emons
  • Claude Fluet

Abstract

An arbiter can decide a case on the basis of his priors or he can ask for further evidence from the two parties to the conflict. The parties may misrepresent evidence in their favor at a cost. The arbiter is concerned about accuracy and low procedural costs. When both parties testify, each of them distorts the evidence less than when they testify alone. When the fixed cost of testifying is low, the arbiter hears both, for intermediate values one, and for high values no party at all. The arbiter's ability to remain uninformed as well as sequential testifying makes it more likely that the arbiter requires evidence.

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Bibliographic Info

Paper provided by Universitaet Bern, Departement Volkswirtschaft in its series Diskussionsschriften with number dp0702.

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Date of creation: Jan 2007
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Handle: RePEc:ube:dpvwib:dp0702

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Keywords: evidence production; procedure; costly state falsification; adversarial; inquisitorial;

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Cited by:
  1. Roland Hodler & Simon Loertscher & Dominic Rohner, 2010. "Biased experts, costly lies, and binary decisions," IEW - Working Papers 496, Institute for Empirical Research in Economics - University of Zurich.
  2. Emons, Winand & Fluet, Claude, 2009. "Adversarial versus Inquisitorial Testimony," CEPR Discussion Papers 7476, C.E.P.R. Discussion Papers.
  3. Winand Emons & Claude Fluet, 2011. "Non-Comparative versus Comparative Advertising of Quality," Cahiers de recherche 1139, CIRPEE.
  4. Emons, Winand & Fluet, Claude, 2011. "Non-comparative versus Comparative Advertising as a Quality Signal," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48713, Verein für Socialpolitik / German Economic Association.
  5. Friehe, Tim, 2009. "Screening accident victims," International Review of Law and Economics, Elsevier, vol. 29(3), pages 272-280, September.

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