"Twelve People of Average Ignorance:" An Economic Analysis of Jury Verdicts and the Awarding of Punitive Damages
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Authors
Parker, Erin J.
Issue Date
2004
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
Over the past few decades, the debate over the ability of juries to competently
decide punitive damage verdicts has been escalating. Some scholars fear that the lack of
an overall understanding of punitive damage laws has forced jurors to make damage
assessments irrationally and unpredictably, ultimately increasing award frequency and
magnitude. Although the majority of current research supports these claims, an overall
lack of data makes it difficult to clearly distinguish trends and has led to further
polarization of opinions on this issue. I first explain punitive damage theory using an
economics and law approach to establish a framework for the understanding of damage
assessment as well as an appreciation for the complexity of the information that jurors
must take into account when deciding awards. I then use the findings from various
studies to substantiate my claims that awards decisions are often made erratically.
Finally, a case study of California tort reform and damage trends is reviewed in order to
analyze damage theory under the context of a concrete example. I find that the decision making
used to arrive at damage verdicts shows an inability to conceptualize the
importance of optimal deterrence theory as well as the benefits of deriving damages from
a multiplier. Multiple studies reveal a predisposition to group polarization and anchoring
effects that further bias award assessments. In addition, although tort reform is a
principle policy issue in the California legal system, it fails to target problems associated
with juror deliberation, which has led to an overall unpredictability in the trend of
damage awards over the past decade.
Description
58 p.
Citation
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License
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