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The Optimal Amount of Falsified Testimony

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  • Emons, Winand
  • Fluet, Claude

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 favour 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 ability to commit to an adjudication scheme makes it more likely that the arbiter requires evidence.

Suggested Citation

  • Emons, Winand & Fluet, Claude, 2005. "The Optimal Amount of Falsified Testimony," CEPR Discussion Papers 5124, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:5124
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    References listed on IDEAS

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    Cited by:

    1. Chopard, Bertrand & Cortade, Thomas & Langlais, Eric, 2010. "Trial and settlement negotiations between asymmetrically skilled parties," International Review of Law and Economics, Elsevier, pages 18-27.

    More about this item

    Keywords

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

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • 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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