Credible Pretrial Negotiation
Pretrial negotiation is a structured environment in which to study bargaining with incomplete information. When a plaintiff believes that a defendant owes him damages, he may first attempt to reach a private settlement before resorting to a costly court-imposed judgment. A central issue in their negotiations is whether the plaintiff's threat to litigate is credible. It is possible for the plaintiff to undermine the credibility of his litigation threat by making a settlement demand that is insufficient. As a result, the plaintiff must raise his settlement demand to limit the amount of bad news he can learn if his offer is rejected. When this credibility constraint is binding, traditional comparative static results are reversed. In addition, even though the defendant is being sued, he wants the plaintiff's threat to be credible.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 18 (1987)
Issue (Month): 2 (Summer)
|Contact details of provider:|| Web page: http://www.rje.org|
|Order Information:||Web: https://editorialexpress.com/cgi-bin/rje_online.cgi|
When requesting a correction, please mention this item's handle: RePEc:rje:randje:v:18:y:1987:i:summer:p:198-210. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.