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Expertise, Contingent Fees, and Excessive Litigation


  • Emons, Winand


Plaintiffs have either strong or weak cases. Both cases should be taken to court, yet weak cases need more work by the attorney than strong cases. Only the attorney knows whether a case needs additional work or not; the plaintiff is forced to rely on the attorney’s recommendation. We show that under contingent fees there will generally be excessive litigation. In contrast, an hourly fee implements the efficient amount of litigation.

Suggested Citation

  • Emons, Winand, 1996. "Expertise, Contingent Fees, and Excessive Litigation," CEPR Discussion Papers 1487, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:1487

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    References listed on IDEAS

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    More about this item


    Contingent Fees; Expert Services; Incentives; Litigation;

    JEL classification:

    • 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


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