Question: 1. Assume that litigation will cost the plaintiff $100 and the defendant $100. Assume that settling out of court is free (SC = $0). What is the largest value of relative optimism (ΔEJ) at which the parties can still settle out of court?
2. Compare the incentives of the judge and the lawyers with respect to the time allocated to a trial.
3. Bribing or intimidating the court is a persistent worry in trials. The use of juries is often justified on the ground that corrupting the jury is more difficult than corrupting a judge. Why might this be true?