Why Plaintiffs' Attorneys Use Contingent and Defense Attorneys Fixed Fee Contracts
AbstractVictims want to collect damages from injurers. Cases differ with respect to the judgment. Attorneys observe the expected judgment, clients do not. Victims need an attorney to sue; defense attorneys reduce the probability that the plaintiff prevails. Plaintiffs' attorneys offer contingent fees providing incentives to proceed with strong and drop weak cases. By contrast, defense attorneys work for fixed fees under which they accept all cases. Since the defense commits to fight all cases, few victims sue in the first place. We thus explain the fact that in the US virtually all plaintiffs use contingency while defendants tend to rely exclusively on fixed fees.
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litigation; contingent fees; fixed fees; expert services;
Other versions of this item:
- Emons, Winand & Fluet, Claude, 2013. "Why Plaintiffs' Attorneys Use Contingent and Defense Attorneys Fixed Fee Contracts," CEPR Discussion Papers 9727, C.E.P.R. Discussion Papers.
- Winand Emons & Claude Fluet, 2013. "Why Plaintiffs' Attorneys Use Contingent and Defense Attorneys Fixed Fee Contracts," Cahiers de recherche 1338, CIRPEE.
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
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.:
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- Winand Emons, 2004.
"Conditional versus Contingent Fees,"
dp0409, Universitaet Bern, Departement Volkswirtschaft.
- Lynk, William J, 1990. "The Courts and the Market: An Economic Analysis of Contingent Fees in Class-Action Litigation," The Journal of Legal Studies, University of Chicago Press, vol. 19(1), pages 247-60, January.
- Daniel F. Rubinfeld & Suzanne Scotchmer, 1993. "Contingent Fees for Attorneys: An Economic Analysis," RAND Journal of Economics, The RAND Corporation, vol. 24(3), pages 343-356, Autumn.
- Alon Klement, 2004. "Incentive Structures for Class Action Lawyers," Journal of Law, Economics and Organization, Oxford University Press, vol. 20(1), pages 102-124, April.
- Patricia Munch Danzon, 1983. "Contingent Fees for Personal Injury Litigation," Bell Journal of Economics, The RAND Corporation, vol. 14(1), pages 213-224, Spring.
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