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Conditional versus Contingent Fees Author info | Abstract | Publisher info | Download info | Related research | Statistics Emons, Winand
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Under contingent fees the attorney gets a share of the judgement; under conditional fees the lawyer gets an upscale premium if the case is won which is, however, unrelated to the adjudicated amount. We compare conditional and contingent fees in a framework where lawyers are uninformed about the clients’ cases. If there is asymmetric information about the merits of cases, in equilibrium attorneys will offer only conditional fees. If there is asymmetric information about the risk of cases, only contingent fee contracts are offered in equilibrium.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
4532.
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Date of creation: Aug 2004Date of revision:
Handle: RePEc:cpr:ceprdp:4532Contact details of provider: Postal: Centre for Economic Policy Research, 53--56 Great Sutton Street, London EC1V 0DG Phone: 44 - 20 - 7183 8801 Fax: 44 - 20 - 7183 8820
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Keywords: adverse selection ; conditional fees ; contingent fees ; moral hazard ; pooling ; screening ; Other versions of this item:
Find related papers by JEL classification: D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Emons, Winand, 2005.
"Playing it Safe with Low Conditional Fees versus Being Insured by High Contingent Fees ,"
CEPR Discussion Papers
4841, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions: Winand Emons & Nuno Garoupa, 2004.
"The Economics of US-style Contingent Fees and UK-style Conditional Fees ,"
Diskussionsschriften
dp0407, Universitaet Bern, Departement Volkswirtschaft.
[Downloadable!]
Other versions: Chopard, Bertrand & Cortade, Thomas & Langlais, Eric, 2008.
"Trial and settlement negotiations between asymmetrically skilled parties ,"
MPRA Paper
8995, University Library of Munich, Germany.
[Downloadable!]
Other versions: Deffains, Bruno & Langlais, Eric, 2007.
"Informational externalities and informational sharing in class action suits ,"
MPRA Paper
4846, University Library of Munich, Germany.
[Downloadable!]
Winand Emons & Nuno Garoupa, 2006.
"US-style contingent fees and UK-style conditional fees: agency problems and the supply of legal services ,"
Managerial and Decision Economics ,
John Wiley & Sons, Ltd., vol. 27(5), pages 379-385.
[Downloadable!]
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