(x), where p′<0, p″>0. In the event of an
accident, the victim (plaintiff) suffers a random loss, L, which we assume is … trial, will file suit in the event of an
accident.11
2.2. The Accident Rate
As noted above, the accident probability is … judge overturns precedent (an event
that will only occur if the judge is PP). The probability of this outcome is (1–
θ0 …