Guilt and Guilty Pleas

Plea bargaining figures heavily in criminal justice systems in the United States and, increasingly, around the globe. Conventional wisdom holds that plea bargaining generates efficiency gains for all parties, while sorting the guilty from the innocent. We build a series of formal models to consider the relationship between a defendant's guilt and her likelihood of pleading guilty. In an inversion of the conventional wisdom, we show that under a range of empirically plausible scenarios-for example, if criminals are more risk-seeking than the wrongfully accused, or if prosecutors derive a career benefit from trial wins-the innocent are more likely than the guilty to plea bargain.