Abstract:Lawyers' contingent fee (CF) rates are rather uniform, often one-third of the recovery. Arguably, this uniformity is a type of anti-competitive pricefixing, which results in clients paying supra-competitive fees. This paper challenges this argument. It shows that uniform CF rates provide clients with an important advantage, as such rates enable them to make a de facto "take-it-orleave-it" offer. Consequently, lawyers cannot exploit their private information, and clients retain the transaction's entire surplus … Show more
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