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Self-Serving Assessments of Fairness and Pretrial Bargaining
Abstract
A persistently troubling question in the legal-economic literature is why cases proceed to trial. Litigation is a negative-sum proposition for the litigants-the longer the process continues, the lower their aggregate wealth. Although civil litigation is resolved by settlement in an estimated 95 percent of all disputes, what accounts for the failure of the remaining 5 percent to settle prior to trial?
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“Our first experiment with this framework found strong evidence that the negotiators formed self-serving assessments of the judge's award and that the discrepancy between the plaintiffs' and defendants' assessments was correlated with the parties' ability to reach voluntary settlements (Loewenstein, Issacharoff, Camerer Table 1 Probability of Impasse by Discrepancy Between Plaintiffs' and Defendant”
From Explaining Bargaining Impasse: The Role of Self-Serving Biases (1997) · cites this paper as Loewenstein, Issacharoff, Camerer and Babcock, 1993
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Rabin, M. (1997) · RePEc: Research Papers in Economics · Cited by 2,463
Explaining Bargaining Impasse: The Role of Self-Serving Biases
Babcock, L., & Loewenstein, G. (1997) · Journal of Economic Perspectives · doi:10.1257/jep.11.1.109 · Cited by 1,071
Self-citationFair Shares: Accountability and Cognitive Dissonance in Allocation Decisions
Konow, J. (2000) · American Economic Review · doi:10.1257/aer.90.4.1072 · Cited by 870
Conflict of Interest in Medical Research, Education, and Practice
Institute of Medicine (2009) · National Academies Press eBooks · doi:10.17226/12598 · Cited by 835
Bazerman, M. H., Curhan, J. R., Moore, D. A., & Valley, K. L. (2000) · Annual Review of Psychology · doi:10.1146/annurev.psych.51.1.279 · Cited by 674
Metadata
- Authors
- Loewenstein, G., Issacharoff, S., Camerer, C., & Babcock, L.
- Venue
- The Journal of Legal Studies
- Publisher
- University of Chicago Press
- Published
- 1993-01
- Volume
- 22
- Issue
- 1
- Pages
- 135-159
- ISSN
- 0047-2530 (ISSN-L)
- 1537-5366
- OpenAlex
- W1986732801
- Cited by
- 292
- References
- 0
- Citations by year
- 2026: 2 · 2025: 9 · 2024: 7 · 2023: 2 · 2022: 12 · 2021: 8 · 2020: 28 · 2019: 12 · 2018: 20 · 2017: 5 · 2016: 9 · 2015: 13 · 2014: 13 · 2013: 15 · 2012: 10
- FWCI
- 7.30
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Journal of Legal Studies (publishedVersion)
- CaltechAUTHORS (California Institute of Technology) (submittedVersion)
- bepress Legal Repository (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Law, Economics, and Judicial Systems
- Social Sciences › Law › Legal processes and jurisprudence
- Social Sciences › Law › Legal principles and applications
- Keywords
- settlement, litigation, fairness, self-serving bias, civil litigation, settlement behavior, dispute resolution
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