Media and Litigation

Gil Epstein and Lindner Pomerantz Renana
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Lindner Pomerantz Renana: Bar-Ilan University, IZA Bonn and CReAM London; Bar-Ilan University

Review of Law & Economics, 2011, vol. 7, issue 2, 539-571

Abstract: In this paper we consider the relationship between the media and the outcome of civil litigation. We present a model dividing lawsuits into two main stages: a signaling stage and a rent-seeking contest. During the first stage the judge is exposed to signals regarding the true position of the defendant, and in addition pays attention to signals reported by the media. The judge forms an initial prejudice towards the plaintiff and the defendant based on the ratio between the true merit of the case and the burden of proof required to establish the plaintiff’s claim (the preponderance of the evidence). Then, we turn to the second stage and provide the plaintiff and the defendant with an opportunity to invest resources in order to influence their winning probabilities. We show how the media can influence the process with biased reports.

Date: 2011
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DOI: 10.2202/1555-5879.1521

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