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Center & Programs Seminar
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Burdens of Proof and Judicial Errors in Civil Litigation (게임이론으로 본 신해철법)
SPEAKER  |  Jeong-Yoo Kim
INSTITUTE  |  경희대학교
DATE  |  November 28(Mon), 2016
TIME  |  16:30
PLACE  |  8309
Keyword  |  
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ABSTRACT  |  In this paper, we consider the effect of the burden of proof assignment on the incentive of the potential defendant to take care in the face of judicial errors. In a simple standard model of no judicial errors, we confirm Hay and Spier’s neutrality result that the defendant takes the same level of care regardless of the burden of proof assignment, although placing it on the plaintiff is socially better because it can save evidence costs. We then consider the possibility of judicial errors. If courts can make errors in processing and interpreting evidence submitted to the judge, it is socially better to place burden of proof on the plaintiff when the proof costs of both parties are low and the evidence is very accurate, because it can alleviate the incentive to take too much care. Paradoxically, we also show that if the defendant’s proof cost is very high, the defendant takes the first-best care level when he bears the burden of proof. Finally, we discuss the sine qua non rule in the case of noisy evidence and identify an accident-avoidance effect whereby the defendant is incentivized to take more care when he bears the burden of proof.
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