Contingent Fees for Personal Injury Litigation
This study present a theoretical analysis of contingent fee and hourly wage contracts for legal services. In contrast to previous analyses, it concludes that with risk neutral plaintiffs and attorneys, the contingent fee induces the amount of attorney's effort that would be chosen by a fully informed plaintiff who was paying an attorney by the hour. Both the expected gross recovery and the expected attorney's fee are the same under a contingent fee as they are under an hourly fee system. For the risk averse plaintiff, expected utility is unambiguously higher with a contingent fee. Empirically based estimates show that regulation of contingent fees may have significant effects on the number of suits and the size of awards.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 14 (1983)
Issue (Month): 1 (Spring)
|Contact details of provider:|| Web page: http://www.rje.org|
|Order Information:||Web: https://editorialexpress.com/cgi-bin/rje_online.cgi|
When requesting a correction, please mention this item's handle: RePEc:rje:bellje:v:14:y:1983:i:spring:p:213-224. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.