Sharing of information prior to settlement or litigation.
In this article the voluntary sharing of information prior to settlement negotiations is studied in a model where one type of litigant--plaintiffs, to be exact--possesses private information. In equilibrium, plaintiffs whose expected judgments would exceed a certain threshold will reveal their information (if they can credibly establish it) and settle for higher amounts than if they were silent; plaintiffs with lower expected judgments will remain silent and settle. The effect of the legal right of "discovery" is also examined.
D002961:Civil Rights / Q000331:legislation & jurisprudence*; D003142:Communication; D008962:Models, Theoretical; D014342:Truth Disclosure; D014481:United States