Wrongful Conviction, Persuasion and Loss Aversion

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Abstract

When can a prosecutor persuade a loss-averse judge to increase her rate of conviction? Motivated by empirical evidence, I study a model of persuasion in which the loss a judge incurs from wrongful conviction looms larger than the gain from a just verdict. I show that, surprisingly, the prosecutor benefits from persuasion even when the judge is extremely loss-averse. However, a necessary condition is that the prosecutor does not underestimate the judge’s loss aversion. I draw on experimental findings to quantify the effectiveness of persuasion under loss aversion.
Original languageEnglish
Place of PublicationCentre for Research in Economic Theory and its Applications, Discussion Paper Series, University of Warwick
PublisherUniversity of Warwick
Publication statusPublished - Dec 2018

Keywords

  • information design
  • loss aversion
  • wrongful conviction
  • Bayesian persuasion

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