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- W3124402977 abstract "When attorney effort is unobservable and certain other simplifying assumptions (such as risk neutrality) hold, it is efficient for an attorney to purchase the rights to a client's legal claim. However, the American Bar Association Model Rules of Professional Conduct prohibit this arrangement. We show that this ethical restriction, which is formally equivalent to requiring a minimum fixed fee of zero, can create economic rents for attorneys, even though they continue to compete along the contingent-fee dimension. The contingent fee is not bid down to the zero-profit level, because such a fee does not induce sufficient attorney effort. We thereby provide a political economy explanation for these restrictions." @default.
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- W3124402977 date "1999-01-01" @default.
- W3124402977 modified "2023-09-27" @default.
- W3124402977 title "Legal fee restrictions, moral hazard, and attorney profits" @default.
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