Expertise, Contingent Fees, and Excessive Litigation.

Plaintiffs have either stong 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 needds 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.

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Year of publication:	1996
Authors:	Emons, W
Institutions:	Departament d'Economia i Història Econòmica, Universitat Autònoma de Barcelona
Subject:	INCENTIVES \| LITIGATION \| INFORMATION

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Series:	UFAE and IAE Working Papers.
Type of publication:	Book / Working Paper
Notes:	15 pages
Classification:	D82 - Asymmetric and Private Information ; K41 - Litigation Process
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005572145