Emons, Winand; Fluet, Claude - Department Volkswirtschaftlehre, Universität Bern - 2005
An arbiter can decide a case on the basis of his priors or he can ask for further evidence from the two parties to the conflict. The parties may misrepresent evidence in their favor at a cost. The arbiter is concerned about accuracy and low procedural costs. When both parties testify, each of...