Econometric Society 57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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PERJURY VERSUS TRUTH-REVELATION: QUANTITY OR QUALITY OF TESTIMONY


Category: Economic Theory
Law and Economics II
Tuesday 27th August 2002, 09:30 - 11:00, Room: 2.2
Session Chair(s): James Anderson, Boston College, UNITED STATES

Presenter(s): Emons, Winand

Co-Author(s): none

Keyword(s): litigation process, mechanism design, perjury rule, truth-revelation, witness

JEL(s): D82, K41, K42

Abstract:

In trials witnesses often slant their testimony to advance their interests. To obtain truthful testimony, courts rely on perjury rules. We show that perjury rules are not truth-revealing and we derive a truth-revealing mechanism for the same set of restrictions under which perjury rules operate. If the judge uses a truth-revealing mechanism, he will get less testimony than under perjury because the defendant will not present a witness with unfavorable news; however, testimony is of higher quality. We show that a court striving for precision prefers truth-revelation to perjury. If the court is rational in the Bayesian sense, chances for the defendant to prevail are the same under perjury and truth-revelation from an ex ante point of view. Truth-revelation thus dominates perjury even when the lower quantity of testimony is taken into account.


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Paper Reference Number: 73

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57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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