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Assume that the American Rule is in place in which the parties must pay their own cost of any trial, cp for the plaintiff and cd for the defendant. in these circumstances, when the cost of a trial is higher for the plaintiff an the defendant is a trial more or less likely? Why? Does your answer depend on whether the model which describes the behaviour of parties s the asymmetric information mode or the optimism model?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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