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``Predictable and Unpredictable Error in Tort Awards: The Effect of Plaintiff Self Selection and Signalling,'' Author info | Abstract | Publisher info | Download info | Related research | Statistics Eric Rasmusen (Indiana University School of Business)
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If a potential tort plaintiff can predict that the court will overestimate damages he is more likely to bring suit, but if the court is aware of this, it will adjust its awards accordingly. In general, court error implies that the court should moderate extreme awards whether they are high or low, because of regression towards the mean. Predictable error, however, tends to push the optimal adjustment downwards and unpredictable error pushes it upwards, because of plaintiff selection and signalling, respectively. The expectation of either kind of error leads plaintiffs to bring meritless suits.
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Paper provided by EconWPA in its series Law and Economics with number
9506003.
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Date of creation: 14 Jun 1995Date of revision:
Handle: RePEc:wpa:wuwple:9506003Note: A 79KB LaTeX file. A postscript file is available on request from Erasmuse@Indiana.edu.Contact details of provider: Web page: http://129.3.20.41
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Keywords: Find related papers by JEL classification: K - Law and Economics
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Göran Skogh & Luisa Tibiletti, 1999.
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