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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. 80% P's assessment of P winning D's assessment of P winning 60% Pls assessment of damages S 450,000 If neither party is risk neutral, D's assessment of damages $ 400,000 Will it settle? Yes or no P's expected gain Given different risk D's expected loss If both parties are Risk Neutral, will it settle? attitudes, will it settle? yes/no 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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