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Lawyers as Agents of the Devil in a Prisoner's Dilemma Game

Author

Listed:
  • Orley Ashenfelter

    (Princeton University)

  • David Bloom

    (Columbia University)

Abstract

The goal of this paper is to explore the possibility that the costs and benefits of legal representation are structured so that each individual party seeks legal representation in the hope of exploiting the other party, while knowing full well that failing to do so will open up the possibility of being exploited. The first part of the paper shows how the structure of the incentives faced by the parties may be estimated, and the second describes the results of empirical tests in several different settings. The empirical results strongly suggest that the parties do face "prisoner's dilemma" incentives, although no attempt is made to determine whether the parties respond to these incentives.

Suggested Citation

  • Orley Ashenfelter & David Bloom, 1990. "Lawyers as Agents of the Devil in a Prisoner's Dilemma Game," Working Papers 650, Princeton University, Department of Economics, Industrial Relations Section..
    • Handle: RePEc:pri:indrel:270
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    Citations

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    Cited by:

    1. Andrew W. Nutting, 2015. "Squealer Dealers: The Market For Information In Federal Drug Trafficking Prosecutions," Economic Inquiry, Western Economic Association International, vol. 53(1), pages 486-507, January.
    2. Ola Bengtsson & Dan Bernhardt, 2014. "Lawyers In Venture Capital Contracting: Theory And Evidence," Economic Inquiry, Western Economic Association International, vol. 52(3), pages 1080-1102, July.
    3. Juranek, Steffen, 2018. "Investing in legal advice," Information Economics and Policy, Elsevier, vol. 44(C), pages 28-46.
    4. Jean Olson Lanjouw, 1993. "Patent Protection: Of What Value and for How Long?," NBER Working Papers 4475, National Bureau of Economic Research, Inc.
    5. J. Ryan Lamare, 2020. "The Devil Is in the Details: Attorney Effects on Employment Arbitration Outcomes," ILR Review, Cornell University, ILR School, vol. 73(2), pages 456-478, March.
    6. Robert M. Hutchens, "undated". "A Path to Good Jobs? Unemployment and Low Wages: The Distribution of Opportunity for Young Unskilled Workers," Economics Public Policy Brief Archive 11, Levy Economics Institute.
    7. Jack Hirshleifer & Evan Osborne, 1999. "Truth and the Legal Battle," UCLA Economics Working Papers 790, UCLA Department of Economics.
    8. Benjamin W. Arold & Elliott Ash & W. Bentley MacLeod & Suresh Naidu, 2025. "Worker Rights in Collective Bargaining," CESifo Working Paper Series 11766, CESifo.
    9. Dr Ronald W. McQuaid, 1994. "Partnerships And Urban Economic Development," Working Paper p13, Departement of Economics, Napier University.
    10. Robert H. Frank & Philip J. Cook, 2013. "Winner-Take-All Markets," Studies in Microeconomics, , vol. 1(2), pages 131-154, December.
    11. Henry S. Farber & Michelle J. White, 1993. "A Comparison of Formal and Informal Dispute Resolution in Medical Malpractice," NBER Working Papers 4371, National Bureau of Economic Research, Inc.
    12. Jack Hirshleifer & Evan Osborne, 1996. "The Legal Battle," UCLA Economics Working Papers 749, UCLA Department of Economics.
    13. Juranek, Steffen, 2015. "Investing in legal advice - What determines the costs of enforcing intellectual property rights?," Discussion Papers 2015/20, Norwegian School of Economics, Department of Business and Management Science.
    14. Hagmann, David & Feiler, Daniel, 2020. "The Agent-Selection Dilemma in Distributive Bargaining," OSF Preprints y6tq2, Center for Open Science.
    15. Halla, Martin, 2007. "Divorce and the Excess Burden of Lawyers," IZA Discussion Papers 2962, Institute of Labor Economics (IZA).
    16. Farmer, Amy & Pecorino, Paul, 2024. "Proposal convergence and settlement under final offer arbitration," International Review of Law and Economics, Elsevier, vol. 77(C).
    17. Bruce D. Meyer, 1992. "Policy Lessons from the U.S. Unemployment Experiments," NBER Working Papers 4197, National Bureau of Economic Research, Inc.
    18. Benjamin W. Arold & Elliott Ash & W. Bentley MacLeod & Suresh Naidu, 2025. "Worker Rights in Collective Bargaining," Cowles Foundation Discussion Papers 2468, Cowles Foundation for Research in Economics, Yale University.

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    Keywords

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    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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