Economic Theory and Experimental Seminar - Martin Richardson (ANU)

Title: Why would a law firm ever retain an honest expert witness?

Abstract: We suppose that expert witnesses are, generically, either honest in their assessment of a fact situation or are mercenary `hired guns' that advocate for their retaining party. The type of a witness is known to law firms, who engage with them repeatedly, but not to courts. If the only way an honest witness can credibly reveal their type to a court is by siding with the opposing party then the question arises of why a law firm would ever retain an honest expert. We argue that it is a signaling device in a game between the law firms, not the firms and the court, and can communicate private information regarding a party's confidence in winning the case.