Why do people always sue for ludicrous amounts of money?
Because it works.
The larger the amount you sue for, the more money you win.
How far can you push anchoring in the courtroom? Does a smart attorney ask for a billion gazillion dollars?
The conventional wisdom says no. There is said to be a “boomerang effect.” Over-the-top demands backfire by making the plaintiff or attorney look greedy. Juries retaliate by awarding less than they would have with a sensible demand.
The mock jurors were asked to give compensatory damages only. Anyone who wants to believe in the jury system must find the resuls astonishing.
$5 million $440,000
$1 billion $490.000
…Asking for $1 billion — an utterly insane number — still got more money than asking for $5 million did. It just didn’t get much more.
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