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Using the graphs provided, decide if the case will settle. 8 0 % P ' s assessment of P winning D ' s assessment of
Using the graphs provided, decide if the case will settle. Ps assessment of P winning Ds assessment of P winning Pls assessment of damages S If neither party is risk neutral, Ds assessment of damages $ Will it settle? Yes or no Ps expected gain Given different risk Ds expected loss If both parties are Risk Neutral, will it settle? attitudes, will it settle? yesno yes or no Minimum P will take if RA D is RA D is RL Minimum P will take if RL Pis RA Maximum D will pay if RA Pis RL Maximum D will pay if RL
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