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Law

2006

Law and Economics

Alex Stein

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Ambiguity Aversion And The Criminal Process, Alex Stein, Uzi Segal Dec 2005

Ambiguity Aversion And The Criminal Process, Alex Stein, Uzi Segal

Alex Stein

Ambiguity aversion is a person's rational attitude towards probability's indeterminacy. When a person is averse towards such ambiguities, he increases the probability of the unfavorable outcome to reflect that fear. This observation is particularly true about a criminal defendant who faces a jury trial. Neither the defendant nor the prosecution knows whether the jury will convict the defendant. Their best estimation relies on a highly generalized probability that attaches to a broad category of similar cases. The prosecution, as a repeat player, is predominantly interested in the conviction rate that it achieves over a long series of cases. It therefore …