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.
Via Priceless: The Myth of Fair Value (and How to Take Advantage of It):
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.
However:
The mock jurors were asked to give compensatory damages only. Anyone who wants to believe in the jury system must find the resuls astonishing.
Demand Award
$100 $990
$20,000 $36,000
$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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