We conduct an experimental analysis of pretrial bargaining, while allowing for the costly voluntary disclosure of private information in a screening game. In this game, the theoretical prediction is that costly voluntary disclosures will not occur. This hinges on the prediction that the person...

First we show that for wealth-constrained agents who may commit an act twice the optimal sanctions are the offender's entire wealth for the first and zero for the second crime. Then we ask the question whether this decreasing sanction scheme is subgame perfect (time consistent), i.e., does a...

Starting with a simple economic model of the value of civil litigation from each side's perspective, this paper analyses a wide range of potential litigation cost strategies, settlement offers and negotiations, together with relevant applications and insights from game theory. Specific issues...

We consider imperfectly discriminating, common-value, all-pay auctions (or contests) where some players know the value of the prize, others do not. We show that if the prize is always of positive value, then all players are active in equilibrium. If the prize is of value zero with positive...

Scholars and practitioners debate whether to expand the scope of the right to be forgotten—the right to have certain links removed from search results—to encompass global search results. The debate centers on the assumption that the expansion will increase the incidence of link removal,...

This paper reports the results of a bargaining experiment. We follow the pretrial bargaining model of Gertner and Miller (1995) under uncertainty and examine the effect of a litigation institution, called a settlement escrow and uncertainty on the timing and quality of settlement outcomes. Our...

Bayesian persuasion (Kamenica and Gentzkow 2011) refers to the optimal signalling of a Sender with informational advantage over the Receiver, under the constraint that the expected posterior (over the state space) equals the common prior. In the basic example of a judicial system with a...