Bayesian persuasion in lawyer–client communication

Mehdi Ayouni, Tim Friehe and Yannick Gabuthy

International Review of Law and Economics, 2024, vol. 78, issue C

Abstract: When considering whether to bring a lawsuit, a plaintiff may delegate the decision to her lawyer- better informed about the case’s merits- or consult with her lawyer and decide for herself. Focusing on the latter, we assess how a lawyer communicates with his client about the case’s merits if the client relies on the lawyer’s information to decide whether to bring suit. In some circumstances, the lawyer only partially reveals the case’s merits to persuade the client to bring a suit. In addition, in anticipation of the lawyer’s strategic communication, the plaintiff sometimes adjusts her questions to the lawyer about the case’s merits. Focusing on the communication between lawyers and clients, our paper explores a new consequence of misaligned incentives between the two parties.

Keywords: Litigation; Communication; Persuasion; Lawyer; Agency (search for similar items in EconPapers)
JEL-codes: D82 K41 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:irlaec:v:78:y:2024:i:c:s0144818824000164

DOI: 10.1016/j.irle.2024.106196

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