Jle.vi Pdf2018 May 2026

Unlike earlier models, this version includes strategic pre-trial disclosure. Result? Even with perfect courts, parties may prefer opacity—because ambiguity preserves bargaining power.

The paper models how different liability standards affect not only precaution levels but also the information parties voluntarily reveal before trial. Under a negligence rule, defendants over-invest in visible safety, while hiding private cost data. Under strict liability, plaintiffs under-invest in evidence gathering. jle.vi pdf2018

Optimal legal design isn’t about minimizing error costs. It’s about forcing information to the surface when one party holds a natural data advantage. Unlike earlier models