This article examines the strategic interaction between a defendant and a p
rosecutor during the plea bargaining process. A four-stage game of incomple
te information is developed where the defendant's guilt or innocence is pri
vate information but the amount of resources available to the prosecutor is
common knowledge. The basic result of the article is that equilibrium is s
emiseparating; the plea offer is accepted by a proportion of the guilty def
endants and is rejected by all of the innocent defendants and the remaining
guilty defendants. In this model an increase in the resources available to
the prosecutor increases the proportion of guilty defendants who accept pl
ea offers. Although the prosecutor is unable to generate complete separatio
n of the guilty and innocent defendants through the plea bargaining process
, prosecutorial resources are beneficial from a societal standpoint.