Convictions versus Conviction Rates: The Prosecutor’s Choice
Is it better to move first, or second— to innovate, or to imitate? We look at this in a context with both asymmetric information and payoff externalities. Suppose two players, one with superior information about market quality, consider entering one of two new markets immediately or waiting until the last possible date. We show that the more accurate the informed player’s information, the more he wants to delay to keep his information private. The less-informed player also wants to delay, but in order to learn. The less accurate the informed player’s information, the more both players want to move first to foreclose a market. More accurate information can lead to inefficiency by increasing the players’ incentive to delay. Thus, a moderate delay cost can increase industry profits.
|Date of creation:||Dec 2008|
|Date of revision:|
|Contact details of provider:|| Postal: 1309 East Tenth Street, Room 451, Bloomington, IN 47405-1701|
Web page: http://kelley.iu.edu/bepp/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Baker, Scott & Mezzetti, Claudio, 2001. "Prosecutorial Resources, Plea Bargaining, and the Decision to Go to Trial," Journal of Law, Economics and Organization, Oxford University Press, vol. 17(1), pages 149-67, April.
- Boylan, Richard T, 2004. "Salaries, Turnover, and Performance in the Federal Criminal Justice System," Journal of Law and Economics, University of Chicago Press, vol. 47(1), pages 75-92, April.
- William M. Landes, 1974.
"An Economic Analysis of the Courts,"
in: Essays in the Economics of Crime and Punishment, pages 164-214
National Bureau of Economic Research, Inc.
- Miceli, Thomas J, 1990. "Optimal Prosecution of Defendants Whose Guilt Is Uncertain," Journal of Law, Economics and Organization, Oxford University Press, vol. 6(1), pages 189-201, Spring.
- Richard T. Boylan, 2005. "What Do Prosecutors Maximize? Evidence from the Careers of U.S. Attorneys," American Law and Economics Review, Oxford University Press, vol. 7(2), pages 379-402.
- Richard T. Boylan, 2004. "Do the Sentencing Guidelines Influence the Retirement Decisions of Federal Judges?," The Journal of Legal Studies, University of Chicago Press, vol. 33(1), pages 231-253, 01.
- Snyder, Edward A, 1990. "The Effect of Higher Criminal Penalties on Antitrust Enforcement," Journal of Law and Economics, University of Chicago Press, vol. 33(2), pages 439-62, October.
- Ramseyer, J Mark & Rasmusen, Eric B, 2001.
"Why Is the Japanese Conviction Rate So High?,"
The Journal of Legal Studies,
University of Chicago Press, vol. 30(1), pages 53-88, January.
- George L. Priest & Benjamin Klein, 1984. "The Selection of Disputes for Litigation," The Journal of Legal Studies, University of Chicago Press, vol. 13(1), pages 1-56, January.
When requesting a correction, please mention this item's handle: RePEc:iuk:wpaper:2008-16. 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: (Rick Harbaugh)
If references are entirely missing, you can add them using this form.