Playing It Safe with Low Conditional Fees versus Being Insured by High Contingent Fees

Emons, Winand (December 2004). Playing It Safe with Low Conditional Fees versus Being Insured by High Contingent Fees (Discussion Papers 04-19). Bern: Department of Economics

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Under contingent fees the attorney gets a share of the judgment; under conditional fees he gets an upscale premium if the case is won which is, however, unrelated to the adjudicated amount. We compare conditional and contingent fees in a framework where lawyers choose
between a safe and a risky litigation strategy. Under conditional fees lawyers prefer the safe strategy, under contingent fess the risky one. Risk-averse plaintiffs prefer conditional fees over contingent fees when lawyering costs are low and vice versa for high lawyering costs.

Item Type:

Working Paper

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics

UniBE Contributor:

Emons, Winand

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

Series:

Discussion Papers

Publisher:

Department of Economics

Language:

English

Submitter:

Lars Tschannen

Date Deposited:

21 Sep 2020 09:43

Last Modified:

21 Sep 2020 09:43

JEL Classification:

D82, K1

BORIS DOI:

10.7892/boris.145652

URI:

https://boris.unibe.ch/id/eprint/145652

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