deviation (in beliefs, utility, or perceived prices) is within e of expected utility theory. The number e can then be used as a … distance to the theory. We apply our methodology to three recent large-scale experiments. Many subjects in those experiments …

then makes a settlement offer. Overinvestment, or bluff, always prevails in equilibrium: with positive probability …

The weak rationality principle is not an empirical statement but a heuristic rule of how to proceed in social sciences …-foundation and, therefore, employ the rationality assumption in economic models. Then, with reference to the ?bounded rationality … a part of the rationality assumption. We conclude with some remarks on handling the problems of ?free will? as well as …

Although an overwhelming proportion of all legal disputes end in settlement, the determinants of the timing of … settlement remain empirically underexplored. We draw on a novel dataset on the duration of commercial disputes in Slovenia to … study how the timing of settlement is shaped by the stages and features of the litigation process. Using competing risk …

settlement versus trial judgment. Exploiting the de facto random assignment of cases to serving judges within the court …'s chambers, we further find that judge characteristics matter for time to trial judgment, but not for time to settlement …

This paper studies how litigation and settlement behavior is affected by agents motivated by spiteful preferences under … settlement requests are higher for more spiteful participants. The relative increase in litigation expenditures due to spite is …

courts to examine the determinants of two salient adjudicatory outcomes: whether a case was resolved via trial or settlement … theory of litigation, we find that trial-based resolution is more likely when the case is complex and less likely when …

It is often argued that even if optimal ex-post, settlement dilutes deterrence ex-ante. We analyze the interest for the … tax authority of committing, ex-ante, to a settlement strategy. We show that to commit to the use of settlements is ex … settlement as a policy tool. …

We examine the various senses in which economist use the term “rationality” and then outline some of the commonly drawn …