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 language | English |
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Place of Publication | Centre for Research in Economic Theory and its Applications, Discussion Paper Series, University of Warwick |
Publisher | University of Warwick |
Publication status | Published - Dec 2018 |
Keywords
- information design
- loss aversion
- wrongful conviction
- Bayesian persuasion