The Inverted Nudge: An Application of Behavioral Economic Concepts to Settlement Outcomes
Lawrence M. Spizman. 2018. The Inverted Nudge: An Application of Behavioral Economic Concepts to Settlement Outcomes. Journal of Legal Economics 24(1-2): pp. 95–106.
This paper presents a behavioral economics approach to understanding the impact of alternative economic loss estimates by defendants on settlement negotiations. The concept of the inverted nudge is developed to introduce additional risk and uncertainty that alters plaintiff’s behavior.
Lawrence M. Spizman