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Legal Advice and Evidence with Bayesian and non-Bayesian Adjudicators

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  • Che, Yeon-Koo
  • Severinov, Sergei

Abstract

We examine the effect of legal advice on the evidence that reaches the court and thernoutcome of adjudication, and highlight how the adjudicator should allocate thernburden of proof in light of these effects. rnDespite lawyers'rnexpertise in assessing the evidence, their advice is found to havernno effect on adjudication if the lawyers follow the strategies of disclosingrnall favorable evidence, irrespective of whether the adjudicator is Bayesian or rnnon-Bayesian. A lawyer's advice can influence the outcome to his client's favor,rneither if (s)he can credibly advise his client to suppress some favorable rnevidence or if legal advice is costly. The effect is socially undesirable in the rnformer case, but it is desirable in the latter case. rnWe also show that social welfare may be increased by regulating the inferencesrnthat adjudicators are allowed to make. Our results provide a general perspective rnfor understanding the role of private information and expert advice in disclosure.

Suggested Citation

  • Che, Yeon-Koo & Severinov, Sergei, 2015. "Legal Advice and Evidence with Bayesian and non-Bayesian Adjudicators," Microeconomics.ca working papers sergei_severinov-2015-24, Vancouver School of Economics, revised 31 Dec 2015.
  • Handle: RePEc:ubc:pmicro:sergei_severinov-2015-24
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    File URL: http://microeconomics.ca/sergei_severinov/Lawyer_advice_12-02-2014_v2_working_paper.pdf
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    References listed on IDEAS

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    1. Grossman, Sanford J, 1981. "The Informational Role of Warranties and Private Disclosure about Product Quality," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 461-483, December.
    2. Froeb, Luke M. & Kobayashi, Bruce H., 2001. "Evidence production in adversarial vs. inquisitorial regimes," Economics Letters, Elsevier, vol. 70(2), pages 267-272, February.
    3. Hay, Bruce L & Spier, Kathryn E, 1997. "Burdens of Proof in Civil Litigation: An Economic Perspective," The Journal of Legal Studies, University of Chicago Press, vol. 26(2), pages 413-431, June.
    4. Hugo M. Mialon, 2005. "An Economic Theory of the Fifth Amendment," RAND Journal of Economics, The RAND Corporation, vol. 36(4), pages 833-848, Winter.
    5. Shin Hyun Song, 1994. "The Burden of Proof in a Game of Persuasion," Journal of Economic Theory, Elsevier, vol. 64(1), pages 253-264, October.
    6. Paul R. Milgrom, 1981. "Good News and Bad News: Representation Theorems and Applications," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 380-391, Autumn.
    7. Froeb, Luke M & Kobayashi, Bruce H, 1996. "Naive, Biased, Yet Bayesian: Can Juries Interpret Selectively Produced Evidence?," Journal of Law, Economics, and Organization, Oxford University Press, vol. 12(1), pages 257-276, April.
    8. Shmuel Leshem, 2010. "The benefits of a right to silence for the innocent," RAND Journal of Economics, RAND Corporation, vol. 41(2), pages 398-416.
    9. George Triantis, 2008. "Evidentiary Arbitrage: The Fabrication of Evidence and the Verifiability of Contract Performance," Journal of Law, Economics, and Organization, Oxford University Press, vol. 24(1), pages 72-94, May.
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    Keywords

    Legal advice; disclosure of evidence; adjudication of disputes; regulating adjudicators' inferences;

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