Likelihood Ratio Tests and Legal Decision Rules
Forthcoming; American Law and Economics Review
28 Pages Posted: 25 Jun 2013
Date Written: June 24, 2013
Various legal decision-making criteria can be formulated as likelihood ratio tests, wherein liability, prohibition, or other outcomes are associated with evidence strength exceeding a posited threshold. Stating rules in this manner clarifies their nature, facilitates the comparison of conventional and optimal rules as well as the identification of differences between rules across contexts, and provides further illumination in instances in which a decision standard is not truly a likelihood ratio test.
JEL Classification: D81, K14, K41, K42
Suggested Citation: Suggested Citation