An analysis of bounded rationality in judicial litigations: the case with loss/disappointment averses plaintiffs

Eric Langlais

MPRA Paper from University Library of Munich, Germany

Abstract: For psychologists, bounded rationality reflects the presence of cognitive dissonance and/or inconsistency, revealing that people use heuristics (Tversky and Kahneman (1974)) rather than sophisticated processes for the assessment of their beliefs. Recent research analyzing litigations and pretrial negotiations also focused on boundedly rational litigants (Bar-Gill (2005), Farmer and Peccorino (2002)) relying on a naïve modelling of the self-serving bias. Our paper in contrast introduces the case for disappointment averse litigants, relying on the axiomatic of Gull (1991). We show that this leads to a richer analysis in comparative statics; at the same time, this proves to be … disappointing: for the purposes of public policies in favour of the access to justice, recommendations are quite ambiguous.

Keywords: conflicts; litigation; negotiation; disappointment aversion. (search for similar items in EconPapers)
JEL-codes: C72 D74 K13 K31 K41 (search for similar items in EconPapers)
Date: 2010-04
New Economics Papers: this item is included in nep-cbe
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: AN ANALYSIS OF BOUNDED RATIONALITY IN JUDICIAL LITIGATIONS THE CASE WITH LOSS DISAPPOINTMENT AVERSE PLAINTIFFS (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:22291

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