Contingent Fees, Moral Hazard, and Attorney Rents: A Laboratory Experiment
AbstractWhen attorney effort is not verifiable, previous theoretical work has found that a competitive legal services market may yield an equilibrium contingent fee that is strictly greater than the zero-profit contingent fee. However, these results require fairly sophisticated consumers who recognize that lower contingent fees do not induce sufficient attorney effort. This paper reports on tests of these predictions in an experimental setting.
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Bibliographic InfoArticle provided by University of Chicago Press in its journal The Journal of Legal Studies.
Volume (Year): 36 (2007)
Issue (Month): 2 (06)
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Web page: http://www.journals.uchicago.edu/JLS/
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- Andrew F. Daughtey & Jennifer F. Reinganum, 2010. "Clients, Lawyers, Second Opinions, and Agency," Vanderbilt University Department of Economics Working Papers 1009, Vanderbilt University Department of Economics.
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