EconPapers    
Economics at your fingertips  
 

Vague lies and lax standards of proof: On the law and economics of advice

Mikhail Drugov () and Marta Troya‐Martinez

Journal of Economics & Management Strategy, 2019, vol. 28, issue 2, 298-315

Abstract: This paper analyzes a persuasion game where a seller provides (un)biased and (im)precise advice and may be fined by an authority for misleading the buyers. In the equilibrium, biasing the advice and making it noisier are complements. The advice becomes both more biased and less precise with a stricter standard of proof employed by the authority, a larger share of credulous consumers, and a higher buyers' heterogeneity. The optimal policy of the authority is characterized in terms of a standard of proof and resources devoted to the investigation.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/jems.12279

Related works:
Working Paper: Vague lies and lax standards of proof: On the law and economics of advice (2018) Downloads
Working Paper: Vague lies and lax standards of proof: On the law and economics of advice (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jemstr:v:28:y:2019:i:2:p:298-315

Ordering information: This journal article can be ordered from
http://www.blackwell ... ref=1058-6407&site=1

Access Statistics for this article

More articles in Journal of Economics & Management Strategy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-09-23
Handle: RePEc:bla:jemstr:v:28:y:2019:i:2:p:298-315