Governance Reform in Legal Service Markets
AbstractThis article discusses proposed governance reforms of legal services markets. The model distinguishes between a status quo position supported by a system of professionally enforced collective reputation and forms of governance based more squarely on market mechanisms. We identify a number of forces which determine the success of reform. Focusing particularly on the "rent recapture" and "relationship substitution" effects, we highlight their impact on client welfare and quality of legal services in different types of market according to whether clients are transient or repeated users of the service. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007.
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Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 117 (2007)
Issue (Month): 519 (03)
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Other versions of this item:
- Grout, Paul A & Jewitt, Ian & Sonderegger, Silvia, 2006. "Governance Reform in Legal Service Markets," CEPR Discussion Papers 5959, C.E.P.R. Discussion Papers.
- Paul A.Grout & Ian Jewitt & Silvia Sonderegger, 2007. "Governance Reform in Legal Service Markets," The Centre for Market and Public Organisation 07/170, Department of Economics, University of Bristol, UK.
- D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
- D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
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