[solution] » (g) What will happen if the case goes to trial after the defendant offers to settle for $10,001? Is

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(g) What will happen if the case goes to trial after the defendant offers to settle for $10,001? Is the plaintiff better off accepting this offer or going to trial? (h) What will happen if the case goes to trial after the plaintiff offers to settle for $9,999? Is the defendant better off accepting this offer or going to trial? (i) What do you expect to happen in pre-trial negotiations? (i) In this scenario, would this cost-shifting rule lead to over-, under-, or efficient precaution on the part of the injurer? TOTALLY OPTIONAL EXTRA CREDIT QUESTION
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This question was created from econ 522 S2014 hw 4 https://www.aceyourstudies.com/file/12043299/econ-522-S2014-hw-4/?focusQaId10142639

 

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Oct 14, 2020

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