Let P, denote the plaintiff's assessment of her probability of winning at trial, and P denote...

 

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Let P, denote the plaintiff's assessment of her probability of winning at trial, and På denote the defendant's assessment of this same probability. In other words, Pa is the defendant's assessment of his probability of losing at trial. Let J equals the monetary judgment that the plaintiff will recover if she wins. Let C and Ca be the costs of trial for the plaintiff and defendant, respectively. 2.1 Derive the range of the amount of the settlements (S) 2.2 Derive the NO-TRIAL condition and use it to argue if pessimism encourages or discourages trail. Let P, denote the plaintiff's assessment of her probability of winning at trial, and På denote the defendant's assessment of this same probability. In other words, Pa is the defendant's assessment of his probability of losing at trial. Let J equals the monetary judgment that the plaintiff will recover if she wins. Let C and Ca be the costs of trial for the plaintiff and defendant, respectively. 2.1 Derive the range of the amount of the settlements (S) 2.2 Derive the NO-TRIAL condition and use it to argue if pessimism encourages or discourages trail.

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2 1 Der ive the range of the amount of the settlements S ANS WER The range of the amount of the sett... View the full answer