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Demand for Artificial Intelligence in Settlement Negotiations

Identification

Public canonical key
radar:r-28147e70baae44b3e270eee62a2b321f
Authors
Joshua S. Gans
Reported year
2026
Reported language
en
Source type
article
First detected
2026-11-14T02:19:22.053860+00:00
Last metadata observation
2026-11-14T02:19:22.053860+00:00
Last HTTP verification
Not checked

Institutions reported by the source

University of Toronto

Reported affiliation countries

CA

Documentary abstract — original language

When prediction by artificial intelligence (AI) substantially resolves trial uncertainty, a party purchasing a prediction from an AI supplier will disclose the prediction if it is in their favor and not otherwise, which signals the outcome to the other party. Thus, the trial outcome becomes common knowledge. However, this implies that the parties will settle rather than purchase the AI prediction. When parties have differing prior beliefs regarding trial outcomes, these differences are resolved only if the prediction is purchased and utilized. In this case, the AI prediction will be purchased in equilibrium. Different allocation rules awarding all trial costs to the losing party (the English rule) or having each party bear their own costs (the American rule) can impact the demand for AI during settlement negotiations, but this demand interacts with the expectations regarding whether a settlement will occur in the absence of an AI prediction.

Identifiers

OPENALEX
https://openalex.org/W7225395653
DOI
10.1086/735891

Documentary context

Documentary family
article
Source-reported types
article
Publishers
University of Chicago Press

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Sources

OpenAlex · Record 1

Cite this reference

Joshua S. Gans. Demand for Artificial Intelligence in Settlement Negotiations. 2026. https://doi.org/10.1086/735891

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APA
Joshua S. Gans. (2026). Demand for Artificial Intelligence in Settlement Negotiations. https://doi.org/10.1086/735891
Chicago
Joshua S. Gans. Demand for Artificial Intelligence in Settlement Negotiations. 2026. https://doi.org/10.1086/735891
ISO 690
Joshua S. Gans. Demand for Artificial Intelligence in Settlement Negotiations. 2026. https://doi.org/10.1086/735891

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Bibliographic / original publication source · https://doi.org/10.1086/735891

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