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Bayesian persuasion in lawyer–client communication

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  • Ayouni, Mehdi
  • Friehe, Tim
  • Gabuthy, Yannick

Abstract

When considering whether to bring a lawsuit, a plaintiff may delegate the decision to her lawyer- better informed about the case’s merits- or consult with her lawyer and decide for herself. Focusing on the latter, we assess how a lawyer communicates with his client about the case’s merits if the client relies on the lawyer’s information to decide whether to bring suit. In some circumstances, the lawyer only partially reveals the case’s merits to persuade the client to bring a suit. In addition, in anticipation of the lawyer’s strategic communication, the plaintiff sometimes adjusts her questions to the lawyer about the case’s merits. Focusing on the communication between lawyers and clients, our paper explores a new consequence of misaligned incentives between the two parties.

Suggested Citation

  • Ayouni, Mehdi & Friehe, Tim & Gabuthy, Yannick, 2024. "Bayesian persuasion in lawyer–client communication," International Review of Law and Economics, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:irlaec:v:78:y:2024:i:c:s0144818824000164
    DOI: 10.1016/j.irle.2024.106196
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    References listed on IDEAS

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    Cited by:

    1. Ayouni Mehdi & Friehe Tim & Gabuthy Yannick, 2024. "On Plaintiffs’ Strategic Information Acquisition and Disclosure during Discovery," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 24(4), pages 1353-1359.

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    More about this item

    Keywords

    Litigation; Communication; Persuasion; Lawyer; Agency;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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