Let P, denote the plaintiff's assessment of her probability of winning at trial, and P denote the defendant's assessment of this same probability. In other words, Pa is the defendant's assessment of his probability of losing at trial. Let J equals the monetary judgment that the plaintiff will recover if she wins. Let C and Ca be the costs of trial for the plaintiff and defendant, respectively. 2.1 Derive the range of the amount of the settlements (S) 2.2 Derive the NO-TRIAL condition and use it to argue if pessimism encourages or discourages trail.