Anchoring Effect in Real Litigation: An Empirical Study

73 Pages Posted: 4 Feb 2016 Last revised: 15 Feb 2017

See all articles by Yun-chien Chang

Yun-chien Chang

Academia Sinica - Institutum Iurisprudentiae (IIAS); New York University School of Law

Kong-Pin Chen

Academia Sinica - Research Center for Humanities and Social Sciences; National Taiwan University - Department of Economics

Chang‐Ching Lin

National Cheng Kung University

Date Written: January 27, 2016

Abstract

Given the wide acceptance of how anchoring affects human decision-making in almost all disciplines of social science, one is surprised to find that the empirical, rather than experimental, evidence is rare and inconclusive. This article offers the first large-scale court evidence for the anchoring effect in judicial decision-making. Using Taiwan’s court cases on trespassing, matched with transaction data to estimate the hedonic values of lands in dispute and another dataset on judge experience, we provide evidence that the plaintiff’s claim has a strong anchoring effect on the court’s judgment. Specifically, the plaintiff’s claim, the defendant’s counter-claim, and the three-judge panel all have significant influence on the decisions of the less-experienced judges; while none of the three has any effect on the decisions of the more-experienced judges. Therefore, we not only provide evidence for anchoring in real litigations, but also identify experience as its crucial determinant.

Keywords: Anchoring effect, equivalent to rent, compensation, unlawful possession, unjust enrichment, rental yield rate, judicial yield rate, self-assessed value, hedonic estimate, land price, judge’s experience

Suggested Citation

Chang, Yun-chien and Chen, Kong-Pin and Lin, Chang-Ching, Anchoring Effect in Real Litigation: An Empirical Study (January 27, 2016). University of Chicago Coase-Sandor Institute for Law & Economics Research Paper No. 744. Available at SSRN: https://ssrn.com/abstract=2726903 or http://dx.doi.org/10.2139/ssrn.2726903

Yun-chien Chang (Contact Author)

Academia Sinica - Institutum Iurisprudentiae (IIAS) ( email )

128 Academia Sinica Rd., Sec. 2
Nankang
Taipei City, 11529
Taiwan

New York University School of Law ( email )

40 Washington Square South
New York, NY 10012-1099
United States

Kong-Pin Chen

Academia Sinica - Research Center for Humanities and Social Sciences ( email )

RCHSS
Academia Sinica
Nankang, Taipei, 11529
Taiwan
886 2 2789 8160 (Phone)
886 2 2785 4160 (Fax)

HOME PAGE: http://idv.sinica.edu.tw/kongpin/

National Taiwan University - Department of Economics

21 Hsiu Chow Rd
Taipei, 10020
Taiwan

Chang-Ching Lin

National Cheng Kung University ( email )

No.1, University Road
Tainan
Taiwan

Register to save articles to
your library

Register

Paper statistics

Downloads
119
rank
230,393
Abstract Views
699
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information