文摘
In this paper, we examine the economics of Rule 408 of the Federal Rules of Evidence, whereby the negotiation processes at the pretrial stage are made inadmissible to prove the amount of liability. It is asserted that under Rule 408 a settlement offer is less inclined to be rejected since the judge is expected to make a lower award given the signal he observes. Also, we derive a sufficient condition for Rule 408 promoting settlement.